Netflix now wants these users to pay more or watch ads: details here

Netflix is ​​eliminating its most affordable ad-free subscription plan, which currently costs $11.99 per month. It will initially launch in Canada and the United Kingdom during the second quarter of the current year. As a result, the most affordable ad-free option for Netflix viewers will be the $15.99 plan, which represents a substantial increase in pricing, as reported by The Verge.

Now, Netflix users looking for a more cost-effective solution can subscribe to the ad-supported plan, with prices starting at $6.99 per month.

“In Q4’23, similar to the prior quarter, our ad-supported memberships grew approximately 70% quarter over quarter, driven by growth in our offering (e.g., downloads) and our engagement of new and re-joining members. The original plan is supported by phasing out. In our ad-supported markets,” Netflix said.

The ad-supported plan now accounts for 40% of all Netflix sign-ups in our ad-supported markets, and we plan to phase out our basic plan in some of our ad-supported countries, starting with Canada and the U.K. Quarterly, and expanding from there,” Netflix added.

According to reports, the move is a direct result of Netflix’s strategy to diversify its revenue streams beyond subscriptions and capitalize on advertising through its ad-supported streaming.

In simple terms, Netflix aims to encourage more users to watch ads or pay more for the standard and premium tiers for a cheaper subscription. Notably, the streaming giant also increased the price of its premium plan in October and revised the price to $22.99.

It’s also notable that this announcement coincides with the unveiling of a new multi-billion dollar deal between Netflix and WWE, which aims to bring Monday Night Raw to Netflix. The deal, worth $5 billion, grants streaming giant Netflix the exclusive rights to broadcast the highly popular live weekly wrestling show to its massive audience for a period of 10 years.