Wesley Hilliard
The endless pursuit of satisfying shareholders has led Netflix to delete its cheapest ads-free tier, leaving users to choose between spending more money or more time with ads.
Netflix stopped letting new users sign up for the "Basic" ads-free tier in the Summer of 2023, just before its ad tier launched. It left existing customers alone at the time, but that will change in 2024.
According to The Verge, Netflix made the announcement while reporting its earnings. The ads-free Basic tier would be phased out entirely, starting with the UK and Canada in Q2 2024, with the US and other countries to follow.
The move is meant to push users to more lucrative subscriptions. They will have to choose to either spend $15.49 on 1080p ads-free content or $6.99 for ad-supported content.
Netflix's statement on the matter:
In Q4'23, like the quarter before, our ads membership increased by nearly 70% quarter over quarter, supported by improvements in our offering (e.g., downloads) and the phasing out of our Basic plan for new and rejoining members in our ads markets.
The ads plan now accounts for 40% of all Netflix sign-ups in our ads markets and we're looking to retire our Basic plan in some of our ads countries, starting with Canada and the UK in Q2 and taking it from there.
Netflix continues to increase prices and change its subscription tiers to ensure the swath of content it buys can be paid for with maximum profits. Though, like the cable giants Netflix hoped to overthrow, it too is approaching the dangerous threshold of "thousands of channels with nothing to watch."
Netflix also announced it struck a 10-year deal with WWE to air "Monday Night RAW." Time will tell how much that deal will cost consumers when Netflix inevitably raises prices again.
William Gallagher
Christine McKee
AppleInsider Staff
Chip Loder
Malcolm Owen
10 Comments
Looks like more "switchers" heading over to Apple TV. I don't have Netflix and never miss it.
> "leaving users to choose between spending more money or more time with ads"
There is of course a third option, which is to leave Netflix and find something better to do with your time. Most of their content, imo, is very mediocre, and there have only been a couple of series that I have been interested to switch it ON or, and then OFF again when done.
After almost 15 years of having Netflix we cancelled a few months back - haven’t been missing it either.
With all of the price increases & lack of competitive tier options it wasn’t worth it anymore. It’s just my wife & I, but we want 4K. Netflix makes you pay for the 4-screen tier, but won’t let you share it. They have become quite the scam in my opinion.
Loving Apple TV+ much better & still sharing Disney plus, Prime & Hulu with other np
This is the very thing that's making me cancel Amazon Prime this coming Monday (the day they add ads to Prime Video.) If these companies wanted to wean us off of all the streaming services, they're finding a way to do it. People hate ads.