End of the line! Netflix ends ad-free basic plan in two countries

In the fourth quarter earnings report released on Tuesday (23/1), the Netflix revealed a substantial change to its subscription structure.

Starting in Q2 2024, the most affordable, ad-free basic plan will no longer be available to subscribers in Canada and the United Kingdom.

This measure, similar to the one implemented in Brazil last year, aims to direct subscribers to the most economical plan, which includes ads.

Netflix’s ad-free basic plan comes to an end

Change is part of Netflix’s strategy to boost its advertising – Image: Reproduction

The ad-free basic plan had already been unavailable for new subscriptions since July, as part of Netflix’s plans to not only raise prices but restructure the options offered to users.

The definitive exclusion of this plan appears as a strategy to encourage new subscribers to opt for the most affordable plan, which includes ads, or the more expensive packages, without ads.

It is important to note that current subscribers will no longer be able to maintain this plan and will be forced to choose and migrate to a new subscription level.

This change is part of Netflix’s strategy to boost its advertising businessreducing dependence on frequent increases in subscription prices.

Regarding this, the company states:

“We want to retire our Basic plan in some of our advertising countries, starting with Canada and the United Kingdom in the second quarter, and continuing from there.”

Currently, the ad-supported plan represents 40% of all Netflix subscriptions.

The strategy, which was already applied in Brazil in October last year, during the presentation of financial results, may be expanded to other countries soon, including the U.Sits largest market by subscribers and revenue.

Subscribers in Brazil, Netflix’s third-largest market, have already gone through a similar transition.

The company discontinued the basic ad-free plan in October 2023, leaving only the standard ad-free, standard ad-free, and premium plans as options.

Netflix, which had an exceptional 2023 with a record 260 million subscribers, is exploring strategies, such as ending password sharing, to further boost its success in the market, gaining the trust of customers. investors.