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Netflix Phases Out Basic Ad-Free Plan Amid Strategic Shift

Netflix Phases Out Basic Ad-Free Plan Amid Strategic Shift

Netflix, the renowned streaming giant, is set to phase out its Basic ad-free subscription plan in select markets, marking a significant shift in its pricing and service strategy. This move, initially targeting Canada and the UK in the upcoming second quarter, aligns with the company’s increased focus on its ad-supported streaming option.

The Basic plan, once the most affordable choice for ad-free viewing, had already been discontinued for new and rejoining members in the US, UK, and Canada since summer 2023. This decision coincides with a notable surge in the popularity of Netflix’s ad-based plan, which witnessed a nearly 70% growth in memberships quarter over quarter in the last quarter of 2023.

With the Basic plan’s retirement, existing subscribers will have to choose between upgrading to the more costly Standard plan or opting for the cheaper ad-supported tier. This restructuring comes as Netflix reports a record global subscriber base of 260 million, despite some backlash over its recent crackdown on account sharing.

Furthermore, Netflix executives have hinted at future price hikes. Last year, the company focused on rolling out a paid-sharing feature, which they considered a substitute for a price increase. With this initiative in place, Netflix is poised to resume its usual approach to raising subscription costs, underscoring its strategy to boost revenue through targeted pricing and service adjustments.