Netflix is seeking to attract more income and therefore announced that its basic ad-free plan will no longer be available, so if users want to watch their series or movies without interruption, they will have to pay a little more to avoid ads.
The streaming platform announced that the measure will apply to the US and UK, where the basic ad-free plan costs $9.99 and £6.99 respectively. Through this strategy, Netflix seeks to add subscribers to its standard plan with ads, in order to generate more advertising revenue.
When will Netflix remove its basic ad-free plan?
Netflix's announced cancellation of the Basic No Ads plan will apply to new users in the US and UK, so subscribers who currently have this plan will be able to stay on it until they change it or cancel their account.
The basic ad-free plan in these two countries costs $15.49 for the US and £10.99 for the UK, which new users who don't want to watch commercials while playing any of the content on the streaming platform will have to pay.
In November last year, Netflix launched a $7-a-month ad-supported plan for the US and 11 other markets as an alternative to ad-free plans, to attract more customers and add a new revenue stream as it grows, sharpening competition for online viewers.
Costs of Netflix plans in the US and UK
With the decision to cancel the basic ad-free plan in the US and UK, the remaining costs and options for Netflix users are:
Standard with ads
$6.99 in the United States
£4.99 in the UK
Standard without ads
$15.99 in the US
£10.99 in the UK
Premium without ads
$19.99 in the US
£15.99 in UK
In May, Netflix also took steps to prevent users from sharing their password, resulting in users having to pay additional fees if their accounts are used outside the same household and even having to downgrade to the basic ad-supported plan.
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