Netflix Scraps Cheapest Ad 2zw1w Free Plan in These Countries

Netflix said that the $9.99-a-month (about Rs. 820) basic plan would no longer be available for new or reing in the US and UK. 5m1s4p

By Reuters | Updated: 20 July 2023 11:43 IST

Netflix launched a $7-per-month option with commercials last November in 12 markets 2ta20

Highlights

Netflix had cracked down on households sharing s in May
Netflix is trying to draw more subscribers to its ad-ed tier
Ad-ed tier had reached nearly 5 million active s per month

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Netflix has removed its basic plan in the US and UK in which s could watch shows and movies without commercials, as the company tries to draw more subscribers to its ad-ed tier.

The company said on its website the $9.99-a-month (about Rs. 820) basic plan would no longer be available for new or reing . s who are already on the plan could continue to remain on it until they change plans or cancel their s.

The streaming video pioneer had launched a $7-per-month (about Rs. 574) option with commercials last November in 12 markets, including the US, as an alternative to ad-free plans. It was designed to attract more customers and add a new revenue stream as competition for online viewers intensified.

Netflix to Restrict and Sharing in India

Netflix had also cracked down on households sharing s in May and forced s who share an outside the same home to pay an additional fee, which in turn triggered droves of s to sign up for its cheaper ad-tier base.

"We expect the most important aspect of Netflix's crackdown on sharing will be the catalyst it creates to attract more s to its $6.99 ad tier base, in turn generating higher revenue from advertising," Macquarie analysts said.

In May, the company said the ad-ed tier had reached nearly 5 million active s per month, in a pitch that emphasized the breadth of its programming to potential rs.

Netflix Adds 6 Million Subscribers After Crackdown

The company is scheduled to report its second-quarter results after markets today where investors will assess risks from the ongoing strike in Hollywood.

© Thomson Reuters 2023

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