Netflix will no longer offer new U.S. subscribers its cheapest ad-free plan.
Netflix’s website notes that its $9.99-per-month ad-free plan is “no longer available for new or rejoining members,” but current customers can remain on the plan so long as they don’t cancel or change plans. The change means the cheapest ad-free tier for new members is now $15.49 per month.
Netflix did not immediately respond to a request for comment from USA TODAY, but the company confirmed the change in a Wednesday report.
After phasing out the basic ads-free plan for new and rejoining members in Canada, “we’re now doing the same in the US and the UK,” the report reads. “We believe our entry prices in these countries – $6.99 in the US, £4.99 in the UK and $5.99 in Canada – provide great value to consumers given the breadth and quality of our catalog.”
What was included in Netflix’s $9.99 basic tier?
The $9.99 basic tier allowed customers to watch content without ads on one device at a time.
Its demise comes shortly after Netflix launched its $6.99 ad-supported tier in November, which features an average of up to four to five minutes of ads per hour. The new pricing plan drew in nearly five million global monthly active users in just six months, with more than a quarter of new signups choosing the ad-supporter plan in countries where it’s available, according to a May press release. On Wednesday, the company said its ads plan membership has nearly doubled since the first quarter.
While an April statement said the basic ad-supported plan has brought in a higher average revenue per membership than Netflix’s $15.49 standard plan, the company on Wednesday said its current ad revenue “isn’t material” because the membership base is still small.
“Building an ads business from scratch isn’t easy and we have lots of hard work ahead, but we’re confident that over time we can develop advertising into a multi-billion dollar incremental revenue stream,” the statement reads.
Netflix has lowered the boom on passwordsharing. What you should do now.
Netflix subscriptions up:How’s that Netflix password crackdown going? Fans are angry, but subscriptions are up
What Netflix plans are still offered?
Netflix plans still offered in the U.S. include:
- A standard plan with ads for $6.99 per month that includes “all but a few movies and TV shows” due to licensing restrictions. Subscribers cannot download shows or movies.
- A standard plan without ads for $15.49 per month that lets users watch and download on two devices at a time in full HD. Customers can add one extra member who doesn’t live in their household.
- A premium plan without ads for $19.99 per month that lets users watch on four supported devices and download on six devices at a time in Ultra HD. Customers can add up to two extra members who don’t live in their household.
Netflix will likely reveal more details during its second-quarter earnings call Wednesday afternoon at 6 p.m. Eastern.