Netflix Scraps Cheapest Ad-Free Plan in These Countries

Netflix said that the $9.99-a-month (about Rs. 820) basic plan would no longer be available for new or rejoining members in the US and UK.

By Reuters | Updated: 20 July 2023 11:43 IST

Netflix launched a $7-per-month option with commercials last November in 12 markets

Highlights

Netflix had cracked down on households sharing passwords in May
Netflix is trying to draw more subscribers to its ad-supported tier
Ad-supported tier had reached nearly 5 million active users per month

Netflix has removed its basic plan in the US and UK in which users could watch shows and movies without commercials, as the company tries to draw more subscribers to its ad-supported tier.

The company said on its website the $9.99-a-month (about Rs. 820) basic plan would no longer be available for new or rejoining members. Users who are already on the plan could continue to remain on it until they change plans or cancel their accounts.

The streaming video pioneer had launched a $7-per-month (about Rs. 574) option with commercials last November in 12 markets, including the US, as an alternative to ad-free plans. It was designed to attract more customers and add a new revenue stream as competition for online viewers intensified.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

Netflix had also cracked down on households sharing passwords in May and forced users who share an account outside the same home to pay an additional fee, which in turn triggered droves of users to sign up for its cheaper ad-tier base.

"We expect the most important aspect of Netflix's crackdown on password sharing will be the catalyst it creates to attract more users to its $6.99 ad tier base, in turn generating higher revenue from advertising," Macquarie analysts said.

In May, the company said the ad-supported tier had reached nearly 5 million active users per month, in a pitch that emphasized the breadth of its programming to potential advertisers.

Netflix Adds 6 Million Subscribers After Password Crackdown

The company is scheduled to report its second-quarter results after markets today where investors will assess risks from the ongoing strike in Hollywood.

© Thomson Reuters 2023

The Chromecast with Google TV that runs on Android TV is here. When will Google learn how to name products? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.