The “Basic” plan will no longer be available to current subscribers.
In its financial report for the fourth quarter of 2023, which was released earlier today, Netflix made the announcement that beginning in the second quarter of 2024, its “Basic” plan, which is the most affordable ad-free option, will be completely eliminated in both Canada and the United Kingdom. Since July of last year, you have not been allowed to join up for this tier. However, as of right now, even current members will no longer be able to keep their ‘Basic’ plan, which was initially priced at $10 or £7 per month but was increased to $12 or £8 in October. To put it another way, you will be compelled to choose between the two more expensive ad-free subscriptions (beginning at $16.49 or £11 per month) or the more affordable ad-supported plan (which costs $6 or £5 per month).
It is clear that Netflix wants to boost its ad business rather than relying too much on the constant price hikes, which appears to be the case with the entire streaming market. It will be interesting to see which side the current user base will lean towards when they eventually have to make their decision, but it is clear that Netflix wants to capitalise on its advertising business. Therefore, according to the earnings report, the ads plan is responsible for forty percent of all of the sign-ups that Netflix receives in its advertising markets at the moment. It would not come as a surprise to us if the same thing were to happen in the United States any time soon. “We’re looking to retire our Basic plan in some of our ads countries, starting with Canada and the UK in Q2 and taking it from there,” the streaming service stated.
Additionally, the company is seeing success in the gaming industry, as evidenced by the fact that user involvement in this sector increased by a factor of three in the year 2023. Netflix is acknowledged with having the “most successful launch to date in terms of installs and engagement… with some consumers clearly signing up simply to play these games.” The Grand Theft Auto trilogy was first released on the platform on December 14, and it has been credited with being the most successful launch to date. However, the company stated that even when compared to the magnitude of Netflix’s core streaming business, it is still in its early stages, and there are no data that are important enough to discuss at this time. Who knows, maybe the game lineup for 2024 will bring about yet another leap in innovation.