Netflix To Discontinue Basic Subscription Plan In The UK And Canada

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In a surprising development, Netflix could discontinue its most affordable subscription plan without advertisements in the United Kingdom and Canada. Most recently, the company released its earnings report for the fourth quarter of 2023. The report mentions that Netflix’s ad-supported plan accounts for 40 percent of the total sign-ups in the respective markets. However, going forward, the OTT platform plans to stop providing services in the
Basic plan.

After The Price Hike, Netflix To Discontinue The Basic Plan In A Few Months

The lowest-tier Netflix subscription plan, Basic, began at USD 10 or EUR 7. Eventually, the platform increased the price to USD 12 or EUR 8. The Basic plan hasn’t been available for new subscribers since July 2023. However, to increase its revenue further, Netflix intends to remove the Basic plan for old and new customers. This will leave the subscribers in the aforementioned regions with two options.

Users Can Either Upgrade Or Go For The Ad-Supported Version

They would either upgrade to the more expensive ad-free plan starting at USD 16.49 or EUR 11 per month or go for the ad-supported plan that costs USD 6 or EUR 5 per month. In a recent investor interview, CEO Greg Peters mentioned that the company aims to bring more subscribers to its ad-supported plan. This particular plan is not only more affordable for customers but also brings in ad revenue from advertisers.

Currently, the ad-supported tier has 23 million monthly active users. Over time, Netflix has improved this subscription with features like 1080p resolution, multiple streams, and downloads. In the fourth quarter of 2023, Netflix’s “ad membership increased by nearly 70 percent quarter over quarter,” supported by improvements in the offerings and “phasing out” of the Basic plan.

Netflix Plans To Focus On Pricing, Ad-Supported Plan, And Monetizing Account Sharing

In the future, Netflix plans to focus on three verticals. First, the platform aims to offer a range of plans to suit different customers. As the company improves and expands, it will keep readjusting the prices. The company is phasing out the Basic subscription tier to promote the ad-supported plan in a few months. Last but not least, it is also monetizing the account-sharing practice people generally use, wherein the subscribers must pay for any extra members viewing content through their account.

Here’s A Quick Overview Of The Indian Netflix Plans

In India, however, Netflix hasn’t introduced the ad-supported plans. The most affordable plan in the country, Mobile (Rs. 149 per month), enables users to view ad-free content on one phone or tablet at a time. Then there’s the Basic plan (Rs. 199 per month), which provides ad-free content on one HD-supported device. Further, there are the Standard (Rs. 499 per month) and the Premium (Rs. 649 per month) plans with FHD and UHD resolution and multiple devices.

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Shikhar MehrotraShikhar Mehrotra
A tech enthusiast at heart, Shikhar Mehrotra has been writing news since college for an undergraduate degree in Journalism and Mass Communication. Over the last four years, he has worked with several national and international publications, including Republic World, and ScreenRant, writing news, how-to explainers, smartphone comparisons, reviews, and list-type articles. When he is not working, Shikhar likes to click pictures, make videos for his YouTube channel, and watch the American sitcom Friends.

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