Netflix Plans to Eliminate Cheapest Ad-Free Tier

Netflix subscribers may have to get used to a whole new setup, as the streaming giant is planning to remove its $11.99 ad-free option starting with Canada and the UK in the second quarter of 2024. 

Following its recent password-sharing crackdowns and new upgrades, Netflix (via its shareholder letter) revealed its plan to slowly phase out its cheapest ad-free tier. After eliminating the basic ad-free plan in the UK and Canada, subscribers from other countries may also see the removal of the lowest-cost plan in the future. 

Over past years, the streamer has been changing its pricing and plan options, which can — according to the letter — help them “effectively capture the value created” by the service. True enough, subscribers have seen upgrades and new features over the years. However, apart from its plan to retire the $11.99 ad-free option, the streaming platform is also planning to “occasionally” make subscribers “pay a little extra” in order to “further improve and grow” their service. 

“As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” the letter reads.

It added, “The ads plan now accounts for 40% of all Netflix sign-ups in our ads markets and we’re looking to retire our Basic plan in some of our ads countries, starting with Canada and the UK in Q2 and taking it from there. On the advertiser side, we continue to improve the targeting and measurement we offer our customers.”

Netflix’s plan to fully phase out the Basic tier comes after they stopped offering it to new and returning subscribers. Some countries also experienced pricing changes, with the ad-free options being divided into two tiers: Standard plan costs $15.49 per month, while Premium costs $22.99 per month. 

Netflix is known for its original series offerings such as Stranger Things, Ozark, Arcane, Black Mirror, BoJack Horseman, The Crown, Narcos, Dark, House of Cards, Mindhunter, Heartstopper, and more. It has also provided a slew of hit films like Tick, Tick…Boom!, Okja, Marriage Story, The King, Don’t Look Up, and All Quiet on the Western Front, among others.