Netflix Retires Basic Subscription

Netflix to Retire Basic Subscription in Some Countries, Increasing Focus on Ad-Supported Plans

While Netflix no longer allows new or returning members to sign up for the ad-free Basic subscription at $11.99 per month, company executives revealed plans to retire the plan in countries where ad-supported options are available.

The initial phase will include Canada and the UK, starting in the second quarter of this year.

This move leaves subscribers with Netflix's $15.49 per month option as the most affordable ad-free plan, marking a significant increase from the previous $11.99 rate.

The ad-supported basic plan is available at $6.99 per month, while the Premium tier is priced at $22.99 per month.

Netflix had already ceased new sign-ups for the Basic plan in Canada last year before extending the change to the US and the UK.

In Q4‘23, the ad-supported membership increased by nearly 70% quarter over quarter, constituting 40% of all Netflix sign-ups in ad-supported markets.

The company aims to retire the Basic plan in select ad-supported countries, starting with Canada and the UK in Q2.

During an investor interview, co-CEO Greg Peters emphasized the ad-supported offering's growth, with 23 million monthly active users.

He highlighted Netflix's focus on scalability, enhancing the offering with upgrades like improved resolution, multiple streams, and downloads.

Netflix reported adding 13.1 million subscribers in the final quarter of 2023, reaching a total of 247 million globally.

In terms of pricing, Netflix executives indicated occasional adjustments to reflect improvements and investments in the platform. Notably, the company recently raised prices for its Basic and Premium plans.

In a surprising move, Netflix announced a 10-year deal to air WWE's Monday Night Raw, marking a significant entry into live sports content.

The $5 billion deal includes the live weekly show's streaming rights, transitioning from over three decades of linear television broadcast.