Why will Netflix discontinue its $11.99 basic plan? Will an ad-supported plan help its revenue grow? Details of all plans

Netflix has announced it to gradually withdraw its most affordable ad-free membership plan in the US and France to encourage more users to switch to its less expensive ad-supported plan. The UK and Canada have already taken comparable measures. From July 2023, there will be no more new signups for the $11.99 monthly basic ad-free plan in the US. Until they change or cancel their subscription, current subscribers may remain with the plan, reports MSN.

Subscription plans still available:

In the US, Netflix currently provides three plans:

$6.99/month plan

Two devices can view in Full HD on this $6.99/month plan with advertisements, and two devices can download content.
A regular monthly subscription that costs $15.49 and has no advertisements, providing Full HD video and downloads for two devices. One additional member may be added to this plan for $7.99 per month.

Ad-free premium package

An ad-free monthly premium package with Ultra HD (4K) resolution on four devices and simultaneous downloads on six devices is available for $22.99. For $7.99 a month each, you can add up to two more members.

Ad-supported plan

With 34% more subscriptions than the previous quarter, the ad-supported plan, which debuted in November 2022, has had notable growth. A 16.5% rise from the previous year, Netflix announced a record 277.65 million members across all tiers in the second quarter of 2024. Along with two streams, higher definition, and cheaper downloads, co-CEO Greg Peters emphasized that the ad-supported plan provides a superior experience. There are still the normal and premium options accessible for individuals who would rather not see any ads.

Netflix's revenue growth

Netflix recorded double-digit revenue growth for the third quarter in a row in Q2 2024, with $9.56 billion in sales, up 16.8% from the same quarter the previous year. Due to well-liked programs like "Bridgerton," "Baby Reindeer," and occasions like "The Roast of Tom Brady," the corporation added over 8 million new customers in the second quarter. The ban on password sharing also aided in the increase of subscribers.

FAQs

Why is Netflix discontinuing its most affordable ad-free plan?
Netflix is ending its most inexpensive ad-free plan to entice more customers to move to its less expensive ad-supported plan, which has seen a sharp increase in memberships.

Which membership plans are still available in the US?
Netflix provides three different plans: an ad-supported $6.99 monthly plan, an ad-free $15.49 standard plan, and an ad-free $22.99 premium plan with Ultra HD resolution.