Netflix’s Ad Plan Phase-Out — Subscribers Getting Warnings

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Netflix Basic Plan is Out 

Many subscribers are furious with Netflix after it announced the end of its cheapest ad-free plan. Now, users will have no other choice but to upgrade. Otherwise, they will lose access to their favorite shows and movies. 

Social media is overwhelmed with posts from frustrated subscribers who have been notified that their subscriptions will end unless they choose a new plan. 

If you’re a subscriber of the Basic plan, which has been discontinued, you should have received an on-screen message stating that July 13th is your last day to watch Netflix. To keep watching, you must choose a new plan. 

The message also informs that the Basic plan has been stopped but it has been replaced with new plans starting at $5.99. 

Basic Plan Ending 

Netflix decided last year that it would sunset its cheapest ad-free tier. Then in June 2024, the company tested the removal of the Basic subscription but only to the users in the UK and Canada. A month later, it eliminated the plan for users in the U.S. 

At first, the company allowed existing Basic plan subscribers who paid $9.99 a month to keep their subscription. However, they have to continue paying for it. The said plan is the least expensive ad-free experience. But it is limited to one device at a time. 

In October, the company increased prices across all plans. The Basic plan is now $11.99 a month. This is the lowest-priced option without ads. 

Earlier this year, the company warned its subscribers that it would stop its Basic plan even for grandfathered subscribers. Netflix started to offer it to users in the UK and Canada. Now, it seems the company is ready to stop offering the Basic subscription entirely. 

If you wish to save money, you might need to switch to another plan which is priced at $6.99 a month. It has ads. If you do not like ads on Netflix, consider the Standard plan. It costs $15.49 a month. 

Market Trends 

Reddit users reported receiving notifications from the company encouraging them to select a new plan. The Basic plan will end on July 13. Thus, customers must choose among the $6.99 with ads, the $15.49 ad-free tier, and the $22.99 ad-free 4K premium plan. That is if they want to continue watching Netflix content. 

The company’s decision to stop offering the Basic plan was first disclosed in its January earnings report. When it was announced, it said that the customers in Canada and the UK would be the first subscribers to be affected. Reddit posts suggest that affected subscribers are primarily located in these regions. 

Why the Rising Costs? 

It is a common strategy for various businesses. The goal here is to boost margins. The price hikes are often in response to the increasing operational costs and the necessity to invest in new content. 

In 2022, the company lost a significant number of subscribers. This is the first time the company experienced it in a decade. As a result, it laid off 300 employees and another round of price increases. 

As the company eliminates its Basic plan and raises prices, many subscribers said that the company is just pushing them to pay more for less.

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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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