Netflix officially stated Wednesday that it will phase out its most basic ad-free membership option, the Basic plan, leaving many subscribers feeling like they have been left on a cliffhanger.
This change is part of the streaming giant’s continuous aim to restructure its pricing model and attract more customers to its ad-supported tiers.
The writing has been on the wall since January, when Netflix stated that the Basic plan would be discontinued in certain territories by the second quarter of 2024. Originally, only members in the United Kingdom and Canada received pop-up notices informing them that they had until July 13 to choose a new subscription plan or face a blank screen where their favorite episodes once appeared. The statement is clear: “Basic plan has been discontinued.”
Now, Netflix has stated that members in the United States and around the world will have to pay extra or switch to an ad-supported service. If they don’t, they will lose access to Netflix.
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The exact date when you will need to change plans or lose service in the United States has not yet been disclosed. Netflix confirmed the change in its quarterly earnings Thursday, but did not specify when it will occur.
With the Basic plan removed, members are left with a few options, each with its own set of trade-offs. Here’s an overview of what’s available:
Standard with Ads ($6.99/month): This is currently the cheapest option. If you don’t mind advertisements interrupting your binge watching sessions, this plan is for you. Consider it an homage to the good old days of television, but with slightly improved programming.
Standard Plan ($15.49/month): If you’re allergic to commercials, you’ll have to pay a little extra for an ad-free environment. It is similar to the Basic plan’s older, slightly more expensive sibling.
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Premium Plan ($22.99/month): For those who want it all, including ad-free viewing and 4K content, this is the best option. It’s ideal for anyone who believes that watching “Stranger Things” in anything other than ultra-high definition is simply uncivilized.
While Netflix has not provided a clear reason for discontinuing the Basic plan, it is likely a strategic move to attract more members to its ad-supported tiers. After all, adverts generate additional revenue streams, and Netflix has recognized that ad-supported accounts may be more profitable than ad-free ones. This decision is consistent with their 2023 earnings call, which emphasized the financial benefits of having customers on the ad-supported tier.
As expected, the reaction on social media has been immediate and vocal. Many subscribers have gone to platforms such as Reddit to vent their dissatisfaction. Comments range from moderate dissatisfaction to extreme fury, with users grieving the loss of a low-cost, ad-free alternative.
What’s next?
If you’re on the Basic plan and haven’t received the message yet, count yourself lucky – at least for now. However, it’s just a matter of time before you have to decide whether to upgrade your plan or include advertisements into your streaming experience.
Netflix’s decision to discontinue the Basic package represents a significant shift in its subscription strategy. Whether you’re willing to put up with commercials or pay more for an uninterrupted experience, knowing your alternatives is essential. As the streaming market evolves, consumers will need to adapt while still enjoying Netflix’s extensive catalog of content.
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