Netflix begins phasing out its basic ad-free subscription in the US
Netflix continues to phase out its ad-free Basic option for customers, expanding the process to existing subscribers in the US and France. The streaming giant announced the move in a letter to shareholders on Thursday and discussed it during its second-quarter earnings call. Affected customers in the U.S. — legacy users who have not canceled their Basic, ad-free subscriptions — will receive emails encouraging them to choose a new plan.
The announcement about the subscription ending isn’t new. The streamer dropped its ad-free Basic plan for new subscribers in the US and UK in July 2023, and followed up with a price increase for existing customers on the plan last October. The price was raised to $12 per month for existing customers in the US who opted to stay on the plan, with increases also coming in the UK and France.
The streamer initially announced that he would be phasing it out completely in a letter to shareholders earlier this year and began its permanent shutdown in the UK and Canada in Q2 2024. Users have begun seeing notifications on screen a deadline for upgrading subscriptions. In addition, Netflix has begun discontinuing the Basic subscription option in certain regions where the ad-supported version is available.
With the new change this year, US subscribers have a choice of three plans: Basic With Ads ($7 per month), ad-free Standard ($15.50 per month) or Premium ($23 per month). If you want to share your account with someone outside your household, there’s an optional additional membership fee of $8 per month. Netflix’s ad-based plan is one of the most popular — and cheaper than rivals Disney Plus and Hulu — but we note that not every title is available to stream on the plan. You’ll need to upgrade to get access to certain TV shows and blockbuster movies.
During Netflix’s earnings call In January 2024, co-CEO Greg Peters emphasized the value of the ad-supported plan over the Basic plan, pointing out that the $7 option offers two streams, better video quality, and downloads.
The streaming service cited its entertainment value, highlighting its growing offerings of video games and live sports programming. After testing the live-streaming waters with a comedy special and a golf tournament, Netflix is diving deeper into live sports. It streamed a tennis match between Rafael Nadal and Carlos Alcaraz in March, and the media giant signed a deal with World Wrestling Entertainment.
Starting in January 2025, wrestling fans in the US, UK, Canada and Latin America will be able to watch live Monday Night Raw matches on the platform, with more regions to come. Netflix will also be the destination for international subscribers looking to watch Smackdown, WrestleMania and other popular WWE shows.
Be sure to check out our coverage of Netflix games and what ad subscriptions are available in the streaming world.
