Netflix has recently announced that it is going to end its cheapest ad-free plan, which currently costs only $11.99 per month in the United States. Canada, the UK, and the US will be the first countries to experience this move, taken by the world’s largest online video streaming industry. The primary reason behind this subscription idea is none other than to make customers buy an expensive plan or switch to one that is ad-supported. Ultimately, it will have exceptional positive impacts on Netflix’s revenue model. As per the reports, the new policies will be implemented in the second quarter of this year.
Ad-Free Basic Plan
While Netflix offers multiple plans to enable users to pick the best suitable for their budgeting requirements, its ad-free basic plan costs only $11.90 per month. Users who have subscribed to this plan can watch the content present on this tremendous platform in SD quality and only on one device. The no-advertisement feature was the one most captivating for the users as they can have a seamless experience.
Implications of the Move
The world’s most popular video streaming platform has stopped signing up users for the ad-free basic plan. This results in limited options for the users to subscribe to watch their favorite content on this platform. After the removal of the previous plan, users have to switch to the other ad-free plan, which is $15.49 per month. Another strategy is to subscribe to the ad-supported basic plan, which is only $6.99 monthly. Although it offers the same perks as the previous ad-free plan and is quite cheap, you have to watch the advertisements regularly along with the content.
Another Netflix subscription plan costs $22.99 per month. This one is the most premium to all and provides ad-free streams in HD quality.
Netflix CEO’s Thoughts
Greg Peters, who is currently the co-CEO of Netflix, has announced that the platform is ending this subscription plan to scale the growth of the company and expand its revenue model. Further, he said that the company has added more exciting advantages to the other plans, like multiple streaming options, 1080p resolution, and a download button. Thus, users can have seamless and more engaging entertainment over this platform.
Impacts
If you are a current subscriber of the ad-free basic plan, you will not be affected. However, if you are new to Netflix, you will not have the opportunity to sign up for the cheapest ad-free plan. Consequently, users must have to sign up for the plan that costs $15.49 per month. Jumping from $11.99 to $15.49 may not seem beneficial to some users as they have to go out of their budget to subscribe to this plan.
