Netflix Just Eliminated Its Cheapest Ad-Free Plan in the U.S. And U.K 

Netflix users hoping to save a dime may be out of luck. The company just axed its cheapest ad-free subscription in the U.S. and the U.K., Variety reports.

Now, the streaming service will no longer offer the Basic plan to “new or rejoining members.” If you already have the basic plan, you’re in the clear.

Netflix users who already use the Basic plan can keep their subscriptions unless they “change plans or cancel [their] account,” according to the company.

The Basic plan, which was available for $9.99 in the United States and £6.99 in the United Kingdom, only allowed users to stream on a single device at a time. Basic plan users are also only allowed to download content on one device.

The controversial move was made to boost subscriptions to the Standard With Ads plan, which the company launched in 2022. This ad-supported plan allows streaming on two devices, but it does not allow downloading for offline viewing. Users with this plan also cannot add another member to their account.

“Our starting prices of $6.99 in the U.S. and £4.99 in the U.K. [for Standard With Ads] are lower than the competition and provide great value to consumers given the breadth and quality of our catalog,” a spokesperson for Netflix told Variety.

The company will continue offering its Standard plan for $15.59 in the U.S. and £10.99 in the U.K. and a Premium plan for $19.99 and £15.99.

Variety also reports that about 95 percent of Netflix’s library is available to users on ad-supported plans, although “a small number are not due to licensing restrictions,” the company said.

Earlier this year, Netflix reported that the Standard With Ads plan was producing higher revenue per customer than the Standard plan, although it costs less, possibly due to ad revenue.

The company is also expected to see a boost from the paid sharing program it rolled out in early 2023. In fact, the company reportedly saw an average of 73,000 new sign-ups in the days following the password crackdown.

“While this will shift some of the membership growth and revenue benefit from Q2 to Q3, we believe it will result in a better outcome for our members and our business,” Netflix said at the time. “Longer term, paid sharing will ensure a bigger revenue base from which we can grow as we improve our service.”

Netflix users in the U.S. and the U.K. will be able to keep their Basic plans for now, unless they plan on changing or upgrading their subscriptions.

The streaming service will be reporting on its Q2 earnings on Wednesday, so it’s possible we will hear more about the controversial move later today.