Ad-free Netflix streaming just got pricier after the company killed its $10/month Basic plan in the US and UK, making ad-free watching a $15.5/month affair.
New or rejoining members in the United States and the United Kingdom can no longer sign up for the ad-free Basic plan, which costs $10/month.
Now those folks have two choices: Pick the Netflix Standard tier and put up with ads in exchange for the lower $7/month price or get an ad-free experience with the Netflix Standard plan, which is considerably pricier at $15.5/month.
The new structure of the Netflix plans was previously tested in Canada.
Ad-free Netflix streaming got pricier in the US and UK
Existing subscribers to the Netflix Basic plan can continue enjoying its benefits until further notice. But if you cancel your Basic subscription or switch to another tier, you won’t be able to re-subscribe to Netflix Basic in the future.
From the earnings release:
In the first quarter, we lowered prices in a number of less penetrated markets, and in the second quarter, we phased out our Basic ads-free plan for new and rejoining members in Canada (existing members on the Basic ads-free plan are unaffected). We’re now doing the same in the US and the UK. 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.
Cord Busters notes that the change enables Netflix to double down on the $7/month Standard with ads plan. The company previously tested this change in Canada and will roll it out to “almost all” remaining countries over time.
Netflix subscription pricing and plans
According to the Netflix website, the company now offers the following subscription plans to customers in the United States following this change:
Netflix Standard with ads:
- Price: $7/month
- Ads: Yes, between four and five minutes of 15-30 second ads each hour
- Extra member slots: No
- Resolution: Full HD (1080p)
- Spatial audio: No
- Library: All but a few movies and TV shows available, unlimited mobile games
- Multi-device support: Stream on two supported devices at a time
- Offline watching: No
Netflix Standard:
- Price: $15.5/month
- Ads: No
- Extra member slots: Add one extra member at $8/month
- Resolution: Full HD (1080p)
- Spatial audio: No
- Library: Unlimited movies, TV shows and mobile games
- Multi-device support: Stream on two supported devices at a time
- Offline watching: Download on two supported devices simultaneously
Netflix Premium:
- Price: $20/month
- Ads: No
- Extra member slots: Add two extra members at $8/month each\
- Resolution: Ultra HD (4K)
- Spatial audio: Yes
- Library: Unlimited movies, TV shows and mobile games
- Multi-device support: Watch on four supported devices at a time
- Offline watching: Download content for offline watching on six supported devices simultaneously
Password-sharing crackdowns boost signups
Netflix wants to end password sharing. So, instead of a single account used by multiple people who don’t necessarily live under the same roof, Netflix now wants you to only share your password with those in the same household.
For people who don’t live in the same household, like maybe your ex, the account owner can purchase extra members and pay for their subscription ($8/month per extra member) or transfer their profiles to new or existing accounts.
The company has said it will continue to end password sharing in other countries after the United States, United Kingdom, Canada, New Zealand, Portugal and Spain.
According to the most recent earnings report [PDF document] on the Netflix Investors website, the company added 5.9 million new subscribers globally from April to June, including more than one million in the United States and Canada.
In a sign that signups already outnumber cancellations, Netflix said during an earnings call it saw “healthy conversion of borrower households into full paying Netflix memberships.” Many subscribers have added extra members to their accounts due to the password-sharing crackdown happening on Netflix.
And because of the Hollywood writers and actors strike, Netflix has more than $5 billion in free cash flow for 2023 vs. the previous estimate of $3.5 billion.