Netflix has quietly killed off its cheapest ad-free plan in a major pricing shakeup.
Its ‘Basic’ tier previously allowed users to watch all the movies and TV shows on the streaming platform in standard definition, without adverts, for just $9.99 (£10.99) a month. Now, it looks as though users will be forced to either sit through ads to keep their costs down or pay for a more expensive streaming plan.
Users can no longer sign up for the ‘Basic’ plan, either for new users or users rejoining the plan. However, those who are currently subscribed can keep the plan until they either switch plans or cancel their account.
At the moment, the cheapest ad-free option is Netflix’s ‘Standard’ plan at $15.49 (£10.99) a month, which allows two simultaneous streams. However, if users opt for the ‘Premium’ plan at $19.99 (£15.99) a month, they can enjoy four simultaneous streams as well as films and TV shows in 4K Ultra HD and HDR.
Unfortunately, users trying to keep their streaming bills low have just one option. Signing up to ‘Standard With Ads’ will cost users just $6.99 (£4.99) a month but the service is fairly no-frills compared to the others. You can’t download films and TV episodes to your device, and it does mean sitting through adverts while you watch. You can find all the full details of Netflix’s plans and pricing here.
Unfortunately, it seems this move was on the cards for a while. Netflix already pulled its Basic tier in Canada last month, and with the company directing more and more users toward its ad-supported plan, it’s not really surprising.
It’s all part of Netflix’s push to generate more revenue through advertising… and it seems to be working.
“In Canada, which we believe is a reliable predictor for the US, our paid membership base is now larger than prior to the launch of paid sharing,” said Netflix back in April during its first-quarter letter to shareholders. “Revenue growth has accelerated and is now growing faster than in the US.”
Of course, there are plenty of folks who aren’t happy with the new changes. “Not happy about Netflix phasing out their Basic plan for new/returning signups,” said one potential customer on Twitter. “You shouldn't have to pay more than double the cost of the ad-supported plan to watch without ads. No ads used to be the whole point of having a sub. Not getting my business at that price point.”
Want to read more about Netflix? Check out why the Masters of the Universe movie is no longer heading to Netflix as well as the 25 best movies on Netflix right now.
Ryan Leston is an entertainment journalist and film critic for IGN. You can follow him on Twitter.
