Streaming giant Netflix has discontinued its ad-free Basic plan, priced at $9.99, in the United States and the United Kingdom.
The discontinuation doesn’t affect existing Basic plan subscribers but compels new subscribers to opt for either the $6.99 Standard with Ads plan, the $15.49 Standard without Ads plan, or the $19.99 Premium option.
According to The Hollywood Reporter, Netflix executives have stated that the ad-supported tier generates higher revenue per subscriber than the now-discontinued Basic tier.
This decision, primarily driven by financial considerations, could adversely impact consumers over time as the price difference between the first two options is nearly double. It highlights the ongoing challenges that consumers face with rising subscription costs in the streaming market. Furthermore, this move may influence other streaming services to reconsider their pricing and ad strategies.