Netflix Begins to Phase Out Cheapest Ad-Free Plan

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Netflix Begins to Phase Out Cheapest Ad-Free Plan
The Netflix logo is displayed at Netflix offices on January 24, 2024 in Los Angeles, California. Mario Tama/Getty Images

Netflix is proceeding with its plan to phase out its cheapest ad-free tier, worth $11.99, for its existing subscribers later this month.

A Reddit post first discussed the matter, saying that the last day for the person to watch on the platform was July 13 unless the plan was upgraded to a higher tier ($15.49 or $22.99) or downgraded to a $6.99 ad-supported tier, which the company is actively promoting.

Netflix Phasing Out Lower Plan Tiers

It is understood that the platform's executives announced in a January earnings call that it was taking away the $11.99 tier by the second quarter of this year, beginning with Canada and the United Kingdom.

The Verge reported that Netflix discontinued its basic plan for new or returning members in the United States, Canada, and the UK.

Negative Reactions from Netflix Subscribers

Meanwhile, Android Central reported that many Redditors who discovered the planned phaseout of the basic ad-free tier were disappointed with the move.

It is unclear why Netflix was increasing its prices, but there are speculations that the service was being pushed to pay extra for its ongoing projects, such as live programming and on-platform gaming.

CNBC reported last April that Netflix's first quarter 2024 subscription rate rose by 16% despite some people unsubscribing its service.

Tags
Video streaming, Netflix

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