Netflix last year introduced a cheaper ad-based plan in an attempt to attract more subscribers, as people had been abandoning the platform due to the cost of regular plans. Even so, the company still offers a basic plan without ads – but that may not last long. In Canada, Netflix has now quietly killed this tier, forcing users to subscribe to the ad-based plan or pay more for higher tiers.
Netflix’s basic plan may soon disappear
As reported by BlogTo (via TechCrunch), Netflix’s website in Canada no longer shows the basic plan without ads as an option for new subscribers. The company didn’t provide details about whether this is a permanent decision or what will happen to current subscribers of the tier that has supposedly now been discontinued.
In most countries, Netflix currently has four different subscription plans: Basic with ads, Basic, Standard, and Premium. Basic plans only offer 720p content for a single device, while Standard has 1080p video and works with up to two devices simultaneously. Premium, the most expensive tier, is the only one with 4K content and support for up to four different devices.
With the latest change in Canada, the “Basic with ads” plan has been rebranded as “Standard with ads.” Just like the original Standard tier, the new one with ads supports up to two devices simultaneously and 1080p content instead of 720p. The plans cost $5.99, $16.49, and $20.99 per month, respectively.
Previously, the now discontinued basic plan without ads was offered at $9.99. This means that customers willing to have an ad-free experience will now have to pay an extra $10.50 at least instead of $4.
It’s uncertain whether Netflix plans to discontinue the basic plan without ads in other countries, but it seems likely. A few months ago, the company updated its website to hide the basic plan without ads for new customers in some regions. It remains available there, but you have to look for a really small link on the Netflix website to get it.
9to5Mac’s Take
Netflix’s strategy comes at a time when the streaming market is oversaturated with dozens of options available, and most of them cheaper than Netflix. This has caused many people to switch to other platforms such as Disney+, Max, and even Apple TV+. However, making customers choose between ads or super expensive plans just to get 4K content may not be the best solution.
To make things worse, Netflix has been rolling out new methods to crack down on password sharing between users. If the system detects that the same account is being used in different houses, the subscriber will have to pay an extra fee or remove one of the devices from that account.
It seems that instead of recovering its lost revenue, Netflix is working hard to lose even more subscribers. Only time will tell if these measures are effective in keeping the platform alive and relevant, but something tells me that this will only hurt the company even more.
Read also
- Netflix cuts subscription prices in multiple countries following new password sharing rules
- Apple TV+ gets closer to Hulu in the US while Amazon Prime Video lost subscribers
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