Netflix Phasing Out Cheapest Plan In Some Regions, Focusing On Costlier Plans: Report

Subscribers currently paying USD 11.99 per month for the basic plan will now choose between the USD 6.99 ad-supported tier, the USD 15.49 ad-free tier, or the USD 22.99 ad-free 4K premium plan.

This decision is part of Netflix's broader strategy to streamline its subscription options and encourage more users to opt for its ad-supported and premium tiers. (Image Source: Unsplash/@Thibault Penin)

Netflix is proceeding with its plan to phase out its cheapest ad-free basic plan for its existing subscribers in some regions. A number of posts on social media platforms including Reddit hint that the streaming giant is now pushing some basic plans to choose from if the users wish to continue their subscriptions. A Reddit user shared a notification which states, “Your last day to watch Netflix is July 13th. Choose a new plan to keep watching.”

According to information from Reddit, subscribers currently paying USD 11.99 per month (approximately Rs 1,000) for the basic plan will now need to choose between three options: the USD 6.99 (approximately Rs 580) ad-supported tier, the USD 15.49 (approximately Rs 1,300) ad-free tier, or the USD 22.99 (approximately Rs 2,000) ad-free 4K premium plan.

Most of the users receiving these notifications seem to reside in Canada or the UK, which is consistent with Netflix's earlier announcement to discontinue the basic tier in these regions by the second quarter of this year. Netflix's pricing page for both Canada and the UK now indicates that the "Basic plan has been discontinued" and offers subscribers the flexibility to switch plans at any time.

Netflix Streamlining Subscriptions 

Last year, Netflix ceased offering its basic plan to new or returning members in the US, Canada, and the UK. However, the company has not specified a timeline for phasing out the basic plan for existing subscribers in the US.

This decision is part of Netflix's broader strategy to streamline its subscription options and encourage more users to opt for its ad-supported and premium tiers. By discontinuing the basic plan, Netflix aims to bolster revenue growth and enhance the value offered through its higher-tier subscriptions.

Existing subscribers in Canada and the UK are required to select a new plan by July 13 to maintain access to Netflix’s content. Currently, Netflix does not offer any ad-supported tiers in India. In India, the platform provides four plans: Mobile, Basic, Standard, and Premium. The Basic plan, priced at Rs 199 per month, allows streaming in 720p resolution across mobile phones, tablets, computers, and smart TVs, limited to one active screen at a time.