Netflix seems to be showing where it intends to focus its subscription strategy. the streaming platform has started to remove its cheapest ad-free planreducing the options available to those who prefer to enjoy content without seeing ads.
The new measure applies to the United States and the United Kingdom, although it would not be unusual for it to begin to expand to more countries in the near future. Note that a similar provision was made in Canada in June, where the cheapest ad-free plan was also removed.
As reported Cord BustersUK and US Netflix users can no longer choose the option offered in exchange for £6.99 or $9.99 per month, respectively. This applies both to those who register a new account with the service, and to those who reactivate their subscription or wish to downgrade from a more expensive plan.
It is worth clarifying that those who are already subscribed to the cheaper plan without ads, can keep it indefinitely. This means that Netflix won’t force you to migrate to one of the more expensive options, or to the cheaper, ad-supported version that launched last year. However, if they cancel or change their subscription, they can no longer return to the level they were at.
Netflix begins to cancel its cheapest ad-free plan
As noted above, the removal of the cheapest ad-free subscription for now affects only Canada, the United States, and the United Kingdom. However, nothing prevents us from thinking that they are just the first steps of a strategy that Netflix intends to implement globally. Either to promote the variant with ads, or to incentivize migration to the more expensive options.
On American and British lands, then, Netflix now offers only three plans:
- Basic with ads: $6.99 or £4.99 per month.
- Standard (no ads): $15.49 or £10.99 per month.
- Premium (no ads): $19.99 or £15.99 per month.
How long will it be before a similar measure begins to be applied in other parts of the world? For now, it is impossible to know. But it would not be unreasonable for this to happen.
Let’s keep in mind that Netflix has made some drastic decisions over the course of the last year to win back subscribers. From launching the aforementioned plan with ads, to charging you more if it detects that you share your account with people you don’t live with. Measures that have been applied with mixed success, by the way.
In Spain, for example, the cheap and ad-supported subscription quickly positioned itself as the preferred option for four out of ten new Netflix users. But this has not been the case everywhere. That is why it is logical to think that the company is willing to sacrifice its cheapest subscription, but without advertising, to enhance the one that does come with ads.
In fact, a Netflix spokesperson did not explain to The Verge why the most affordable ad-free plan was removed. Although he did make the case that the $6.99/£4.99 sponsored-content offering is more affordable than anything offered by its competitors.
For now, those who sign up for Netflix in the United States, United Kingdom or Canada and are not willing to see ads when playing movies and series, they have no choice but to choose one of the most expensive plans available.