The famous streaming giant Netflix has just confirmed the speculations. It’s going to discontinue the $12 per month no-commercial streaming option. Originally, this ad-free Basic plan was the most affordable way for subscribers to enjoy Netflix without the interruption of ads.
The Big Change
This Basic plan was only suitable for 720p resolution and on one device. However, it also allowed members to download content. But, in January, the service was no longer available to new members. And by June, subscribers in the UK and Canada found themselves being kicked off the plan. To their surprise, they were moved automatically to a cheaper plan that, unfortunately, came with ads.
In an official document directed to shareholders, confirmed for the first time, Netflix divulged the fate of the ad-free Basic plan. Specifically, Netflix users in the US and France will soon face the cancellation of this plan. The shift will see the least expensive ad-free Netflix subscription become $15.49 per month instead.
What the New Standard Plan Offers
This Standard Plan designed to replace the basic plan will not only be commercial-free but also support up to two devices. Additionally, this plan will include downloading perks and promise 1080p resolution for a richer viewing experience. However, the announcement comes as a shock and a disappointment to many, particularly those looking to stick to the budget option that was the ISP-free Basic subscription.
The Big Question: Why this Change?
While Netflix hasn’t explicitly unveiled the reasons behind the removal of the basic plan, we can correlate it with one significant aspect: economics. Simply put, the increase in subscription prices indicates a strategic move to boost revenue. We’ve seen a lot of investment in creating original content in recent years from Netflix. This kind of investment requires significant capital, and higher subscription fees could be a tactic Netflix is employing to offset costs.
The End of an Era: Reflecting on the Basic Plan
For a large number of subscribers, the Basic plan was a steal. It provided access to an array of films, series, and documentaries minus the annoyance of ads–and for a reasonable price. Its removal certainly raises eyebrows regarding Netflix’s business strategy and commitment to affordable streaming.
What’s the Future for Netflix Users?
As the dust settles on this announcement, subscribers face the decision of whether to pay a bit more for the ad-free experience or adjust to the new reality with ads. Netflix users will need to evaluate the trade-offs. The Standard plan may be more expensive, but it does offer some promising features that might just make the extra dollars worth it.
Source: Netflix Letter to Shareholders, 2021
Conclusion
In a nutshell, the discontinuation of Netflix’s ad-free Basic plan inserts a significant change in the way its American and French subscribers will access content. It’s vital for users to understand what this means and decide how they plan to navigate their Netflix usage moving forward. Amidst all the changes, one thing’s for sure: Netflix’s streaming platform will continue to provide entertainment and money’s worth experience for its audience.