After launching its cheapest ad-free plan in Canada last month, Netflix is following suit in the US and UK, as first spotted by Cord Busters. Netflix’s support page in both countries states that the basic $9.99 (£6.99) per month plan is no longer available “for new members or those who are rejoining”.
In its earnings report on Wednesday afternoon, Netflix stated: “In Q1, we reduced our prices in some markets with lower penetration, and in Q2, we phased out our basic ad-free plan for new members and those rejoining in Canada (existing members on a basic ad-free plan are not affected). We are now doing the same in the US and UK. We believe our entry prices in these countries ($6.99 US, £4.99 UK) and $5.99 in Canada) offer great value to consumers given that the breadth and quality of our catalog.”
Users who are currently subscribed to the basic plan, will be able to keep their subscription as long as they do not cancel it or switch to another plan. However, if you’re looking to switch to the cheaper ad-free plan, you’re out of luck. With this change, Netflix now only offers one ad-supported tier for $6.99 (£4.99) per month, a standard plan for $15.49 (£10.99) per month and a premium plan for $19.99 (£15.99) per month.
Previously, Netflix hid its base plan behind a “see all plans” button. Netflix spokeswoman Kumiko Hidaka confirmed the scrapping of those plans in a statement to The Verge, adding that “prices start at $6.99 in the US and £4.99 in the UK lower than the competition.”
On Wednesday, Netflix co-CEO Greg Peters explained that the platform’s goal is to “optimize” the structure of the service’s plans, noting that “we want to give consumers access to a variety of pricing.” “We believe that the ticket prices we currently have offer great entertainment value and attract a large number of customers.”
Sadly, the fate of Netflix’s original plan was sealed when they quietly removed it in Canada. In the US and UK, Netflix has also begun hiding the base plan when new users sign up for the platform, forcing them to click a “see all plans” button to make it appear as an option alongside their other offerings. Also, the basic plan doesn’t allow additional members to be added to the account, as part of their co-pay policy.
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