Netflix It has become popular for offering loads of ad-free series and movies for a small monthly fee. Things have changed so much in the past decade, that the company made the decision to drop one of its cheapest plans.
According to information from Hollywood ReporterNetflix has decided to end its primary plan in the United States and the United Kingdom. In case you didn’t know, this is the cheapest ad-free plan, which offers access to their catalog for $9.99 per month. You have to remember that Plan disappeared from Canada a few weeks ago.
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With this said, new Netflix users in these regions now have two options: pay $6.99 for the standard plan with ads or pay for one of the more expensive plans without ads (the standard plan is $15.49 per month and the premium is $19.99 per month).
But what will happen to those who already have the Netflix Basic plan? They will be able to keep their subscription until they cancel their account or change plans. So, if you like this plan and want to keep it, you can’t stop paying Netflix.
Notably, the plan disappearing in important markets like the US, Canada, and the UK seems to indicate that it’s only a matter of time before it becomes unavailable in all regions.
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Why is Netflix removing the basic ad-free plan?
Now, why the hell did Netflix make the decision to remove the basic ad-free plan? It turns out that the commercial plan gives them more money per subscriber than the standard plan. With that in mind, this also means that they make more money with this plan than with the basic plan.
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So, while Netflix is neutral on whether subscribers prefer the Standard plan or the Standard plan with ads, they decided to remove an option that would give them less revenue. Bottom line: It was a business decision.
What do you think of this new? Will you miss out on the basic Netflix plan? Tell us in the comments.
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