In another move that affects its Canadian subscribers, Netflix has announced the elimination of its basic plan option in the country, according to The Winnipeg Free Press. Following the streamer’s earlier decision to increase charges for account sharing between households in Canada, this new policy change further alters the streaming landscape for users.
Existing subscribers who are currently on the basic plan will not be forced off it, but if they decide to switch to another plan or close their account and later rejoin, they will no longer have access to the basic tier. New users will no longer have the option to choose the basic plan, and current subscribers on other plans will eventually lose the ability to switch to it as well. In Canada, the basic tier was priced at $9.99 (CAD) per month, while the basic plan with ads cost $5.99, the standard plan was $16.49, and the premium plan was $20.99.
This recent move follows Netflix’s unexpected introduction of an ad-supported tier in November 2022, despite previously stating that it would not offer such an option. The ad-supported tier was launched in Canada, the United States, and ten other countries. By removing the basic plan, Netflix is nudging more of its customers towards the ad-filled viewing experience. The motivation behind this decision is simple: Ad-supported plans can be highly lucrative for Netflix’s financial performance. Surprisingly, in the first quarter of 2023, the basic plan with ads brought in more revenue per user in the US than the standard plan, even though the ad-supported tier was priced at $6.99, compared to the standard plan’s cost of $15.49.
Currently, there is no indication that Netflix plans to eliminate the basic plan in the United States anytime soon. However, for those who wish to avoid paying more or watching ads, now might be an opportune time to consider selecting the basic plan. In the US, the basic plan is priced at $9.99, while the premium plan costs $19.99.
