In a further adjustment to its pricing structure, Netflix has discontinued its cheapest streaming option that offered no advertisements.
That change leaves newcomers and returning customers with two choices — either tolerate commercials or pay a higher monthly fee for an ad-free experience.
Netflix’s Basic plan, which ran $9.99 per month, is no longer offered “for new or rejoining members” in the U.S. and U.K., the company said. The same tier was recently removed in Canada as well.
If you’re an existing Basic subscriber, there’s no immediate loss: you can “remain on this plan until you change plans or cancel your account,” Netflix noted.
This move is part of Netflix’s effort to steer more cost-conscious viewers toward its ad-supported subscription.
How Many Plans Netflix Previously Offered
Suppose you’re ready to sign up for Netflix to watch shows like “The Witcher,” “Stranger Things,” “Bridgerton” or “Is It Cake?” — not to mention an enormous library of films.
Until recently, Netflix gave you four plan options:
- Standard With Ads – 1080p HD, two devices
- Basic – 720p HD, one device
- Standard – 1080p HD, two devices
- Premium – 4K HD, six devices
The ad-supported Standard With Ads tier is $6.99 per month. The Basic plan, now being phased out, cost $9.99 per month.
The ad-free Standard plan is $15.49 per month, while the Premium plan runs $19.99 per month.
So if you sign up (or sign back up) now, your options are to pay about seven dollars a month and accept ads, or pay more than twice that to avoid them.
Removal of the Basic Tier Follows Password-Sharing Crackdown
This adjustment comes roughly two months after Netflix said it would start charging $7.99 per month for account access shared with someone outside a subscriber’s household.
Netflix had largely tolerated password sharing in the past, but later argued the practice was leading to excessive revenue losses.
Netflix Is Steering People Toward the Ad Tier
By eliminating the cheapest ad-free option, Netflix appears intent on nudging budget-focused customers toward its advertising-supported plan, analysts say.
Netflix introduced a version of the service with commercials in November. Initially labeled “Basic With Ads,” it offered only 720p HD resolution and limited streaming to a single device.
In April, Netflix upgraded that ad tier to “Standard With Ads,” boosting streaming quality to 1080p Full-HD and allowing playback on up to two devices simultaneously while keeping the same price, making the ad option more appealing.
(Most modern televisions support 1080p Full-HD or 4K Ultra HD, so 720p is now considered lower-end.)
The ad-supported Netflix plan inserts advertisements before and during programming, with individual spots lasting up to 30 seconds. Netflix says viewers will see about four minutes of ads per hour, which is less than typical cable television.
The ad tier has attracted a notable number of subscribers. Media outlets covering entertainment reported that in May Netflix disclosed roughly 5 million members had joined the ad-supported plan, and about 25% of new sign-ups opted for that choice.
So the choices for new and returning customers are now straightforward:
- Accept ads on Netflix for roughly $7 per month, or
- Pay for an ad-free service — about $15.50 or $20 monthly, depending on desired picture quality and number of simultaneous devices.
If you want background on Netflix’s strategy, see how netflix launches ad tier and tips on how to get netflix for free for more context.
Jordan Ellis is a senior writer at Savinly.
