Netflix Eliminates Cheapest Ad-Free Plan in U.S. and France

Netflix announced it is discontinuing its lowest-priced ad-free plan in the U.S. and France. This move was revealed in the streaming giant’s second-quarter earnings report.

Subscription Changes

The $11.99 per month basic plan had already been phased out in Canada and the U.K. Since July 2023, new sign-ups for the basic plan were halted, but existing subscribers could retain it until now.

Subscribers affected can switch to the $15.49 per month ad-free Standard plan or downgrade to the $6.99 per month ad-supported plan, introduced in November 2022. There’s also a $22.99 per month premium plan. The basic plan was unique in not allowing multiple simultaneous streams.

Company Insights

Greg Peters, Netflix’s co-CEO, highlighted the success of the ad-supported Standard plan in Canada and the U.K.

“Essentially, we’re providing a better experience: two streams versus one, higher definition, downloads, all at a lower price of $6.99 in the U.S. We believe this offers tremendous value. For those preferring an ad-free experience, our Standard and Premium plans are available,” Peters said.

Growth and Financials

Netflix reported a record 277.65 million global subscribers in the earnings report. A crackdown on password sharing contributed to a surge in new subscribers.

The basic plan is no longer listed on Netflix’s U.S. Plan and Pricing page. The ad-supported tier’s appeal led to a 34% increase in subscriptions from the previous quarter. Netflix saw its third consecutive quarter of double-digit revenue growth, reporting $9.56 billion in revenue for Q2 2024, up 16.8% from Q2 2023.

Future Offerings

Netflix added over 8 million subscribers in Q2, boosted by popular series returns like “Bridgerton” and new content such as “The Roast of Tom Brady.” The company also announced upcoming monthly video game releases, including titles based on “Emily in Paris” and “Squid Game.”

Available Plans

Standard with ads ($6.99 monthly): Full HD, 2 streams, downloads on 2 devices.
Standard plan ($15.49 monthly): Full HD, 2 streams, downloads on 2 devices, add 1 extra member for $7.99.
Premium plan ($22.99 monthly): Ultra HD (4K), 4 streams, downloads on 6 devices, add up to 2 extra members for $7.99 each.

Netflix forecasts fewer new subscribers for the current quarter compared to the same period last year. The company plans to stop reporting membership numbers in 2025.