Netflix (NASDAQ:NFLX) has quietly discontinued its lowest-priced ad-free streaming plan in the US just before its quarterly earnings announcement on Wednesday.
The “Basic” plan, previously available to US consumers for $9.99 per month, has been removed. This follows a similar move by the company in Canada last month. Meanwhile, Netflix has been highlighting the success of its recently introduced ad-supported offering, priced at $6.99 per month.
For those seeking an ad-free experience, Netflix now offers plans starting at $15.49 per month.
On its website, Netflix stated, “The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.”
In its previous quarterly report, Netflix provided more information about its ad-supported tier, expressing satisfaction with its progress. The company stated, “While it’s still early days, we continue to be pleased with our progress across all key dimensions: member experience, value to advertisers, and incremental contribution to our business. Engagement on our ads tier is exceeding our initial expectations, and we have observed minimal switching from our standard and premium plans.”
Netflix executives have noted that engagement among ad-supported subscribers is comparable to that of the ad-free plan and have not witnessed a significant number of consumers downgrading from premium plans.
Netflix CFO Spencer Neumann mentioned in January, “We wouldn’t be entering this business if it couldn’t become a meaningful portion of our revenue, and hopefully much more over time.” Netflix is scheduled to report its second-quarter earnings after the bell on Wednesday.
Analysts anticipate positive results due to the promising data surrounding the ad tier, Netflix’s efforts to combat password sharing, and optimistic reports about its resilience amidst potential long-lasting strikes in the entertainment industry.
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Author Stephanie Bédard-Châteauneuf 
