In a strategic shift, Netflix has chosen to retire its most economical subscription tier, the basic plan, in both the United States and the United Kingdom.
The basic plan had been offering standard definition streaming on a single device at a cost of $9.99 per month in the US and £6.99 per month in the UK. However, from July 2023 onwards, this budget-friendly plan is no longer available to new Netflix subscribers in these regions.Current subscribers who are on the basic plan have the option to retain their plan and pricing until such time they decide to alter or cancel their Netflix membership.
Nevertheless, potential new subscribers are now presented with a narrowed choice between the Ad-supported Standard plan for $6.99/month, the Standard HD plan available at $15.49/month in the US and £10.99/month in the UK, or the Premium 4K plan costing $19.99/month in the US and £15.99/month in the UK and extra members can be added for $7.99/month.
However, the standard plan with ads may not be available through all third-party billing partners and packages. Subscrivbers are advised to check with their provider to confirm availability and extra members have their own account and password, but their membership is paid for by the person who invited them to share their Netflix account.
This elimination of the basic plan indicates a pivot in Netflix’s business approach amidst escalating competition from other on-demand streaming giants such as Disney+, HBO Max, and Amazon Prime Video. As the company grapples with decelerating subscriber growth, it is now prioritizing the attraction of new subscribers via ad-supported plans. Simultaneously, it aims to gently nudge existing subscribers towards its higher-priced plans by doing away with its most inexpensive option.
The termination of the basic plan is likely to disappoint many cost-conscious subscribers who found solace in Netflix’s most economical ad-free offering. The subsequent cheapest plan is now $6 more expensive per month in the US. Although Netflix has alluded to the possibility of launching a new affordable ad-supported plan, there has been no concrete confirmation or timeline for the same.
In light of these changes, new Netflix subscribers must brace themselves to pay a slightly higher price for ad-free content streaming. Existing basic plan subscribers, however, can enjoy their current plan uninterrupted, but will need to evaluate their options thoughtfully should they choose to alter or discontinue their existing plan.
