Netflix announced that in the second quarter of this year it will retire its Basic subscription plan in select countries where ad-supported plans are available, starting with Canada and the UK.

Netflix’s cheapest ad-free subscription price in the US was $12

The Basic plan, priced at $11.99 per month in the US, will be discontinued, leaving subscribers with the cheapest ad-free plan at $15.49 per month. The move represents a significant price hike for users switching from the discontinued Basic plan to the next available option.

Netflix reported a nearly 70% quarter-over-quarter increase in ad-supported subscriptions in Q4 2023, which accounted for 40% of all Netflix signups in ad-supported markets.

The company has been phasing out the Basic plan for new and re-joining members in these markets, and the plan’s retirement is part of its strategy to focus on ad-supported subscription tiers. The ad-supported plan currently reportedly has 23 million monthly active users, highlighting Netflix’s priority to grow this segment.

Netflix co-CEO Greg Peters highlighted the growth and appeal of the ad-supported plan, citing enhancements including upgraded resolution to 1080p, multiple streams and downloads, and the company aims to retire its Basic plan in select ad-supported countries. This change will first be implemented in Canada and the UK.

Netflix’s decision to end the Basic plan comes as the company continues to invest in and improve its services, introducing new features such as 4K streaming and expanding its gaming division. Executives have indicated that price adjustments may be necessary from time to time to reflect these developments, and last year it raised the prices of its Basic and Premium plans. What do you think? Please share your thoughts with us in the comments.