Netflix is phasing out its lowest-priced ad-free subscription plan in the U.S., which could drive more viewers to its cheaper ad-supported plan.
The Los Gatos, California-headquartered streaming giant said Thursday in a letter to shareholders it would be phasing out the basic ad-free plan – which had cost $11.99 monthly – in the U.S. and France. Previously, the company dropped the basic plan in the U.K. and Canada.
The basic plan is not displayed as an option for U.S. subscribers on its Plan and Pricing page for U.S. customers. The company quit offering the basic plan for new subscribers in July 2023, but allowed basic plan customers to remain on the subscription so long as they didn’t cancel or change plans.
Other Netflix plans include a $6.99 monthly option with ads, a $15.49 monthly standard HD video quality plan (no ads) and a $22.99 premium Ultra HD plan (no ads).
Netflix, which began offering an ad-supported plan in November 2022, said the “attractiveness” of the ad-supported plan led to an increase in subscriptions of 34% during the April-June 2024 period, but did not say how many subscribers were added.
Netflix did not immediately say when current basic ad-free subscribers would need to choose another plan.
The company reported its third consecutive quarter of double-digit revenue growth, with $9.56 billion in revenue in the second quarter of 2024, up 16.8% over the same quarter in 2023.
Netflix added more than 8 million subscribers in the second quarter, benefiting from the return of series such as “Bridgerton,” and “Baby Reindeer” and the live event “The Roast of Tom Brady,” as well as a password-sharing crackdown.
What Netflix plans are there?
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Standard with ads ($6.99 monthly): Watch in Full HD on 2 supported devices at a time and download on 2 supported devices at a time
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Standard plan ($15.49 monthly): Watch in Full HD and download videos on 2 supported devices at a time (option to add 1 extra member who doesn’t live with you for $7.99 monthly).
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Premium plan ($22.99 monthly): Watch in Ultra HD (4K) quality on 4 supported devices at a time and download on 6 supported devices simultaneously; Option to add up to 2 extra members who don’t live with you for $7.99 monthly).
Netflix adds 8 million new subscribers
Total number of subscribers grew to more than 277.6 million, an increase of 16.5%, the company said. Netflix forecast lower subscriber additions in the current quarter (July-Sept.) than in the same period last year, when the streaming company added more than 8.7 million.
Back in April, the company announced it planned to stop reporting membership numbers in 2025.
In after-hours trading, Netflix shares initially dipped 2%.
Netflix will begin the launch of monthly video game releases including one based on “Emily in Paris,” later this month. Coming later this year, a multiplayer game based on “Squid Game.”
Contributing: Bailey Schulz, USA TODAY
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This article originally appeared on USA TODAY: Netflix pricing, plans: Basic ad-free dropped; see remaining plans
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