Netflix is phasing out its Basic plan, which offers an ad-free streaming experience at a lower cost. The plan, priced at $9.99 per month, provides 720p video quality.
However, Netflix has now made it difficult to find and plans to eliminate it altogether. The company has confirmed this decision to CTV News. Stating that customers who want an ad-free experience will need to opt for a higher-priced plan. Which starts at $15.49 in the United States.
Existing Basic plan subscribers will be grandfathered in and can keep their current plan. However, if they switch to a different plan, they will not be able to revert to the $9.99 Basic option. While the Basic plan is still available in the United States, it is now hidden from the main page. Users are presented with options for plans with ads, standard plans, and premium plans, but the Basic option is only visible when selecting “See All Plans.”
Netflix has recently taken steps to crack down on account sharing in an effort to drive up subscriptions. The company allows account holders to add “extra members” to their plan for an additional fee in select countries. This move by Netflix appears to be aimed at increasing revenue by pushing subscribers towards more expensive plans.
It is reported that thousands of Netflix customers are signing up for new subscriptions daily as they find themselves locked out of their accounts. According to Netflix, around 100 million people worldwide access the streaming service through a friend or family member’s account.
The elimination of the Basic cheap ad-free option suggests that Netflix is seeking to maximize its revenue by encouraging subscribers to choose higher-priced plans.
