Netflix became popular for offering a bunch of series and movies without ads in exchange for a small monthly fee. Things have changed a lot in the last decade, to the point that the company made the decision to eliminate one of its cheapest plans.
According to information from The Hollywood Reporter, Netflix decided to end its Basic plan in the United States and the United Kingdom. In case you didn't know, this is their cheapest plan without ads, which provides access to their catalog for $9.99 USD per month. It's worth remembering that this ]plan disappeared from Canada a few weeks ago.
As a result, new Netflix users in these regions now have 2 options: pay $6.99 USD for the Standard plan with ads or shell out for one of the more expensive ad-free plans (the Standard plan costs $15.49 USD per month, and the Premium plan costs $19.99 USD monthly).
But what will happen to those who already have the Basic plan? They can keep their subscription until they cancel their account or switch to another plan. So, if you like this plan and want to keep it, you won't be able to stop paying for Netflix.
It's worth mentioning that the plan's disappearance in such important markets as the United States, Canada, and the United Kingdom suggests that it's only a matter of time before it becomes unavailable in all territories.
Why is Netflix removing the Basic ad-free plan?
Now, why on earth did Netflix decide to eliminate the Basic ad-free plan? It turns out that the plan with commercials generates more money per subscriber than the Standard plan. Keeping this in mind, it also means they make more money with this plan than with the Basic plan.
So, while Netflix remains neutral about whether subscribers prefer the Standard plan or the Standard plan with ads, they did decide to eliminate an option that brought them less profit. In short: it was a business decision.
What do you think about this news? Will you miss Netflix's Basic plan? Tell us in the comments.
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