Netflix The company is phasing out its cheapest ad-free subscription plan in the U.S., which could lead more viewers to switch to cheaper plans. Ad-supported plans.
The Los Gatos, California-based streaming giant announced on Thursday Letter to Shareholders The company said it will phase out its $11.99-per-month ad-free basic plan in the U.S. and France after already discontinuing the basic plan in the U.K. and Canada.
The Basic plan does not appear as an option for US subscribers. Plans and pricing page For US customers. The company Stop offering the Basic plan The free plan was discontinued for new subscribers in July 2023, but customers on the basic plan could continue to use their subscription unless they canceled or changed their plan.
Other Netflix plans include an ad-supported option for $6.99 per month, a standard HD video quality plan (no ads) for $15.49 per month, and a premium Ultra HD plan (no ads) for $22.99 per month.
Netflix is “Standard with Ads” tier in November 2022The company said the “attractiveness” of the plans led to a 34% increase in ad-supported subscriptions from the previous quarter. The company reported a record 277.65 million subscribers across all plans in the second quarter, up 16.5% from the same period last year.
In a statement to USA Today, the company said that Netflix subscribers in the US and France who are currently on the basic plan will have to choose a new plan, and that affected members will be receiving emails starting today.
Even without the basic ad-free service, Netflix is a “very strong offering for our members” when you factor in the ad-supported option that costs $6.99 per month, co-CEO Greg Peters said during a video conference call. The company’s second-quarter results were released on Thursday..
“Basically, we’re offering a better experience: two streams instead of one, higher quality, downloads available, and of course, all at a lower price,” he said. “And members who don’t want an ad-free experience can, of course, choose our standard or premium plan, which is ad-free.”
The company reported second-quarter 2024 revenues of $9.56 billion, up 16.8% compared to the same quarter in 2023, marking the third consecutive quarter of double-digit revenue growth.
Netflix added more than 8 million subscribers in the second quarter, thanks to the return of series like “Bridgerton” and “Baby Reindeer,” live events like the “Roast of Tom Brady,” and more. Crackdown on password sharing.
What plans does Netflix offer?
- Standard with Ads ($6.99/month): Watch in Full HD on two compatible devices at once and download to two compatible devices at once
- standard plan ($15.49/month): You can watch in Full HD and download videos on two compatible devices at once (adding an additional member who doesn’t live with you costs $7.99 per month).
- Premium Plan ($22.99/month): Watch in Ultra HD (4K) quality on four compatible devices at a time and download simultaneously to six compatible devices. Option to add up to two members who don’t live in your home ($7.99/month).
Netflix adds 8 million new subscribers
The company said its total subscriber base rose 16.5% to more than 277.6 million. Netflix expects subscriber additions for the current quarter (July-September) to be lower than the same period last year, when it added more than 8.7 million subscribers.
In AprilThe company announced that it plans to stop reporting membership numbers in 2025.
In after-hours trading, Netflix shares initially fell 2%.
Netflix will begin releasing monthly video games later this month, including one based on “Emily in Paris.” Later this year, it will also release a multiplayer game based on “Squid Game.”
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