Hold on to your popcorn, folks, because Netflix is about to give us a plot twist we never saw coming! Say goodbye to the cheapest, ad-free plan, as Netflix plans to fully phase it out. Cue the dramatic music!
In their latest results report, Netflix proudly announced that their ad-supported plan accounted for a whopping 40% of all sign-ups in markets where it’s been launched. Talk about a power move! Plus, they revealed that the number of subscribers on ad tiers grew a mind-boggling 70% in just one quarter. They didn’t spill the beans on exact numbers, but they did let slip that they now have over 23 million monthly active unique users on advertising tiers. That’s a whole lot of binge-watching, my friends!
To keep the momentum going for their ad-supported plan, Netflix is waving goodbye to the beloved no-ads Basic plan in select countries. Sorry, Canada and the U.K., you’re up first in the second quarter! And from there on, who knows where they’ll strike next? It’s like playing a thrilling game of hide and seek with your favorite shows.
But let’s not get too carried away with the drama, folks. Netflix co-CEO Greg Peters reassures us that the advertising business won’t become a cash cow overnight. He claims they still have “years” of work ahead before it becomes a revenue-generating powerhouse. So, take a deep breath and keep scrolling for now.
This decision to fully phase out Netflix Basic shouldn’t come as a complete shocker. They stopped offering it to new subscribers in markets like the U.S., Canada, and the U.K. So long, Basic plan, it was nice knowing you!
In case you’re wondering, Netflix’s ad-supported plans are currently available in a swanky list of countries including the U.S., U.K., Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, and Spain. It’s like a global premiere of ads invading our screens! The Netflix Basic With Ads tier swooped in last November, priced at $6.99 per month—less than half the cost of the Standard plan. Talk about a bargain in the wild world of streaming!
Now, before you spiral into panic mode, Netflix wants you to know that price increases are, unfortunately, part of the grand plan. As they continue to enhance and upgrade our viewing experience, they may ask us to dig a little deeper into our pockets. But hey, it’s all for the greater good of giving us a top-notch streaming service, right? So, let’s embrace those price hikes and hope for even more incredible content!
