In a move that has left many subscribers scratching their heads, Netflix has decided to remove its basic plan, forcing new subscribers to opt for more expensive options. This decision has sparked a flurry of discussion online, with many questioning the streaming giant’s motives. This article will delve into the details of this surprising development and what it means for Netflix users.
The basic plan, which was ad-free and cost $9.99, was a popular choice for many Netflix users who wanted to enjoy their favourite shows and movies without interruption. However, as of now, new subscribers will have to choose between the $6.99 “Standard with Ads” tier, the $15.49 “Standard” plan, and the $19.99 “Premium” plan, all of which are ad-free.
The End of the Netflix Basic Plan
According to a report from The Hollywood Reporter, Netflix has removed the ad-free “Basic” plan in the U.S. and U.K., pushing new subscribers to opt for more expensive subscription options. The move is seen as a strategic step by Netflix to increase its revenue by encouraging new subscribers to opt for pricier plans.
The company’s sign-up page now only shows three options for new subscribers: the $6.99 “Standard with Ads” tier, the $15.49 “Standard” plan, and the $19.99 “Premium” plan. In an FAQ on its sign-up page, Netflix stated that “the Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.”
Implications for Current Subscribers
For current Basic plan subscribers, they can keep their plan for now, with the new changes only applying to new or returning subscribers. However, if a current Basic subscriber lets their subscription lapse, or upgrades to another tier, they will not be able to return to the Basic tier and price they enjoyed before. Therefore, it shouldn’t come as a surprise that the streaming platform is starting to lose the Netflix vs Disney+ war.
The Rise of the Ad-Supported Plan
Netflix’s decision to remove the Basic plan comes after the successful launch of its ad-supported tier, which already draws higher revenue per subscriber than its standard tier. The elimination of the Basic tier will push new users to either the ad-supported plan or the standard plan, which is more than double the price of the ad plan.
The Success of the Ad-Supported Plan
Despite initial criticism, Netflix’s ad-supported tier has been successful in attracting new subscribers. In May, Netflix revealed that this ad-based tier has over five million active users each month. Furthermore, Netflix revealed that the Basic with ads tier has just as much engagement as the ad-free tiers, meaning that the company is making plenty of money from the sheer amount of ads being watched by subscribers.
Netflix’s Position in the Streaming Market
After losing subscribers for the first time last year and then getting backlash for cracking down on password-sharing, it looked like Netflix might be knocked off its streaming throne. However, with an increase in subscribers and an influx of once-exclusive content, Netflix is once more back on top of the streaming world.
Final Thoughts on Netflix removing its basic plan
Netflix’s decision to remove its Basic plan is a bold move that reflects the company’s confidence in its position in the streaming market. While this decision may not be popular with all subscribers, it’s clear that Netflix is willing to take risks to increase its revenue and maintain its dominance in the streaming industry. As the streaming wars continue to heat up, it will be interesting to see how Netflix’s competitors respond to this latest move.
What do you make of this news? Were you a subscriber to the Netflix Basic plan, and if so, what do you make of the streamer’s decision to remove it? Let us know your thoughts in the comments below.
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