Netflix is Ending Its most Affordable Ad-free Plan for Subscribers in the US

Netflix is discontinuing its least expensive ad-free subscription plan in the U.S. The announcement came on Thursday alongside Netflix's second-quarter earnings report. 

The $11.99 per month basic plan had already been phased out for subscribers in Canada and the U.K. New sign-ups for this plan were stopped by the company in July 2023, but existing subscribers were allowed to keep it until now. 

Subscribers on the basic plan have the option to upgrade to the ad-free Standard plan at $15.49 per month or switch to the ad-supported plan introduced in November 2022, priced at $6.99 per month. Additionally, there is a premium plan available for $22.99 per month. 

When questioned about the impact of discontinuing the basic plan in Canada and the U.K., Greg Peters, Netflix's co-CEO, highlighted the success of the Standard plan featuring ads since its introduction. 

“Essentially, we're providing them a better experience, two streams versus one. We've got higher definition. We got downloads. And, of course, all at a lower price, $6.99 in the United States. We think that represents a tremendous entertainment value. And it includes ads,” Peters said. “And for members who don't want that ads experience, they, of course, can choose our ads-free standard or premium plans as well.” 

Netflix revealed in its earnings report a staggering 277.65 million global subscribers across all tiers. The company attributed a surge in new subscribers to its recent crackdown on password sharing.