Netflix in the US and UK Ads in the "Basic" Plan Turned Off
Netflix in the US and UK Ads in the "Basic" Plan Turned Off
After discontinuing its lowest-priced ad-free plan in Canada last month, Netflix is now doing the same in the US and UK, as Chord Busters first noticed. In both countries, Netflix's Help Page states that the $9.99 (£6.99)/month basic plan has ended "for new members or recurring users". Customers who are still subscribed to this plan will not be affected unless they change or cancel their plan.
Main Points
- Netflix in the US and UK Ads in the "Basic" Plan Turned Off.
- The lowest price is $6.99 per month for the ad-based plan that the company launched last month.
- Netflix's Ad-Supported Plan "Basic with Ads" Now has "Nearly 5 Million" monthly active users.
Now subscribers will get the lowest price for an ad-based plan of $6.99 per month, which the company launched last month. According to Netflix's site, it allows you to watch all but a few movies and series in high-definition, stream on two devices at the same time, and access an infinite number of mobile games. Other options are Netflix's Normal and Classic plans, which include no ads and give members the option to download content and share their account with one or two people outside their household, but at $15.49 and $19.99 per month, respectively. are more valuable. The Classic plan offers simultaneous Ultra HD broadcasting on up to four devices and downloading on up to six.
The company introduced a $7 per month option with ads in 12 markets, including the US, last November as an alternative to the ad-free plans. The aim was to entice more customers and add a new income source as competition for online audiences stiffened.
Netflix is the latest major entertainment company to introduce advertising into its streaming service in an effort to increase revenue and profit. Earlier this year, the company banned account sharing among families after seeing a slowdown in customer expansion, and blamed it in part on users sharing their login information with friends and other families. . Video streaming service Netflix announced on Wednesday that it has ended its primary plan in the US and UK, in which members could enjoy ad-free shows and movies, as the company attracts more subscribers to its ad-based tier. trying to seduce.
"The Basic plan is no longer available to new or returning members," Netflix wrote on its FAQ Page early Wednesday morning. "If you are still on the basic plan, you can stay on it unless you change plans or terminate your account."
Plans & Pricing
Netflix gives you a variety of plans from which you can watch your favorite shows and movies.
As a Netflix member, you pay a monthly fee on the date you sign up. The use of Netflix account is only for those people who live together in the same house.
| Netflix Plans | Features |
|---|---|
| Standard with Ads |
|
| Standard |
|
| Premium |
|
Pricing (US Dollars)
- Ad-supported Standard*: $6.99/month
- Standard: $15.49/month (Additional Member Slot** can be added for $7.99 per month)
- Premium: $19.99/month (Additional Member Slot** can be added for $7.99 per month)
What did the representatives of Netflix tell?
Netflix representatives have stated that the advertising plan generates more revenue per subscriber than the Standard plan, but have also stated that they are indifferent to which plan customers choose. The elimination of the basic tier will prompt new customers to either the ad-based plan or the standard plan, which is several times the price of the ad plan.
What the Former CEO of Netflix Admitted Last Year?
Netflix's former CEO Reed Hastings admitted last year that the company lagged behind in the adoption of advertising because of its focus on competing with major tech companies. Other streaming platforms such as HBO Max, Hulu, Peacock and Paramount+ already had cheaper, ad-supported options, while Disney (DIS) was actively developing an alternative to its Disney+ streaming platform.
Netflix's Ad-Supported Plan
Netflix's ad-supported plan, which was introduced in the last quarter of last year as "Basic with Ads", has now grown to "nearly 5 million" monthly active users, the company said in its first ad rollout in May. was disclosed in Active users are not equal to subscribers (presumably, one subscription can have multiple users) but this is a step in that direction.
Netflix Password Sharing
Netflix also cracked down on password sharing across households in May and forced users to pay additional fees for account sharing outside the same household, prompting many users to turn to its cheap ad-supported premise. Signed up.
Macquarie Analysts said, “We anticipate that the most important aspect of Netflix's crackdown on password sharing will be the incentive to entice more users to its $6.99 ad tier, which will generate more advertising revenue.” .
In May, the company said that the ad-driven scale had touched nearly 5 million active users per month, emphasizing the breadth of its programming for potential advertisers. The company is scheduled to publish its second-quarter results after the close of markets today as investors assess the impact of the strike in Hollywood.
A new live-action film based on the 'Masters of the Universe' toys has reportedly "died" on Netflix, according to a report in Koimoi. A film based on Barbie maker Mattel's He-Man and several other famous characters has already cost nearly $30 million in production, but the streaming giant has decided to abandon the project, reports inside sources.
Netflix's Share Price
Netflix's share price was virtually unchanged following the announcement on Wednesday. The stock is up more than 60% so far this year.