Netflix ditches cheapest ad-free plan

(KTLA) – Netflix has done away with its most affordable ad-free option for subscribers. The streaming giant has removed its $9.99 advertising-free "Basic" plan in the U.S. and in the U.K., less than a month after it made the same move in Canada.

This change doesn't affect people who already have the Basic plan, but it does force new subscribers to either sign up for a $6.99 "Standard with ads" tier, the $15.49 "Standard" (without ads) tier, or the $19.99 "Premium" option.

"The Basic plan is no longer available for new or rejoining members," Netflix posted on its FAQ page as of Wednesday morning. "If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account."

According to The Hollywood Reporter, Netflix executives said the ad tier draws higher revenue per subscriber than the Basic tier they just got rid of.

This is just the latest alteration made to the platform. In May, Netflix began cracking down on password sharing, a practice the streaming service once joked about allowing.

Since it began its password crackdown, Netflix's quarterly revenue and subscriptions have climbed, the company said Wednesday. Executives did note in a letter to investors that while membership to ad-based plans has nearly doubled since early 2023, "it's still off a small membership base, so current ad revenue isn't material for Netflix."

Just last year, before launching its ad-supported plan, Netflix also raised the subscription prices for all of its plans by $1 or $2.

Another streaming service, NBC's Peacock, also announced this week that it will be raising its prices next month.