Netflix Discontinues Basic Plan: What You Need to Know

Netflix is set to discontinue its Basic subscription plan, which is priced at $11.99 per month in the US and does not include advertisements. Starting after July 31, users in regions like Canada and the UK are being notified of the change. The company is encouraging subscribers to switch to either the cheaper ad-supported plan or the more expensive ad-free plan. This strategic shift is part of Netflix’s broader move to integrate advertisements into its service offerings, generating additional revenue through ad sales.

The Basic plan, initially introduced to provide a lower-cost option without ads, has become less favorable in light of industry trends. Streaming services, including Disney+ and Amazon Prime Video, have increasingly adopted ad-supported models. By eliminating the Basic plan, Netflix aims to align with these trends, pushing users toward the ad-supported plan that can offer similar content at a reduced price while benefiting from the revenue generated by advertisements.

Netflix’s decision comes as the company continues to explore new revenue streams amid growing competition in the streaming market. The integration of ads is expected to diversify its income sources and offset potential subscriber churn. This move also reflects Netflix’s efforts to remain competitive and adaptable, ensuring it can offer various pricing tiers that cater to different consumer preferences and economic conditions.