close
close

Netflix begins the announced gradual abolition of the cheapest ad-free tariff

Netflix begins the announced gradual abolition of the cheapest ad-free tariff
Netflix begins the announced gradual abolition of the cheapest ad-free tariff

Netflix has reportedly begun phasing out its cheapest ad-free plan for existing subscribers after announcing plans to do so in January.

Social media users in Canada and the UK have posted that they have received notifications from Netflix that the company’s Basic plan was discontinuedand they have to choose between an ad-supported or a more expensive ad-free option, The Verge reported Tuesday (July 2).

When asked by The Verge about the notifications, Netflix referred to a statement the streaming provider made in January. Merits Call: “The ad plan currently accounts for 40% of all Netflix signups in our ad markets, and we’re looking to phase out our base plan in some of our ad countries. We’ll start with Canada and the UK in Q2 and go from there.”

Netflix has discontinued its Basic plan for new or returning members in the US, Canada and the UK in 2023according to the report.

The company has not given any indication as to when it will phase out the plan for existing subscribers in the U.S., the report said.

Netflix said in April that subscription fees and its growing Advertising business increased its operating profit by 54% to $2.6 billion in the first quarter. The company also added 9.3 million paying subscribers during the quarter, bringing the total worldwide to nearly 270 million.

The streaming provider launched its foray into advertising support in 2022 and has since seen advertisers invest in campaigns designed to resonate with the platform’s viewers.

“Our two priorities in advertising are scaling our member base and expanding our advertiser capabilities,” Netflix said by the time in a letter to shareholders. “We made progress on both fronts in the first quarter.”

Netflix is ​​not the only provider making such changes. Streaming services As PYMNTS reported in January, providers are trying to increase revenue per user through advertising opportunities and higher prices.

Amazon Prime Video introduced a new fee of $2.99/month for ad-free televisionotherwise integration Advertising is breaking into the content. In addition, important players, including Disney+, Warner Bros. Discovery‘S Max And YouTubeTV Premiumhave increased their prices.


Leave a Reply

Your email address will not be published. Required fields are marked *