(Credit: Tiffany Hagler-Geard/Bloomberg via Getty Images)
It looks like the cheapest way to enjoy Netflix without ads is getting axed.
The streaming giant has quietly removed the $9.99-per-month Basic tier as a subscription option from Netflix’s website for US and UK users.
That means new subscribers looking for the most affordable option for an ad-free Netflix experience will have to pay $15.49 per month for the Standard plan. Otherwise, it's $6.99 per month to watch the streaming service with ads (£4.99 in the UK).
In a statement, Netflix confirmed that "the Basic plan is no longer available for new or rejoining members" in the US and UK, and that nothing changes for existing Basic members.
"If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account," a Netflix spokesperson says. "Our starting prices of $6.99 in the US and £4.99 in the UK are lower than the competition and provide great value to consumers given the breadth and quality of our catalog."
Netflix didn't say why it's ditching the Basic plan, but the move is likely a way to pull in more revenue. Later today, Netflix is scheduled to report Q2 earnings.
In April, Netflix said it generates a higher "Average Revenue per Membership" in the US through the ad-based tier than the Standard option because the ad-based plan pulls in sales from both the $6.99-per-month fee and additional revenue through the commercials.
The main drawback of the "Basic with ads" plan is that you can't download anything for offline viewing. After an April upgrade, the Basic and Basic with ads plans both offered 720p video; Standard supports 1080p streams while Premium offers 4K + HDR.
Netflix first killed off the Basic tier for new subscribers in Canada. Now it's done the same in the US and UK, meaning the streaming giant is likely preparing to phase out the Basic tier in more markets in favor of the ad-based plan. The decision may irk customers as Netflix is also cracking down on account-sharing more broadly to force users to subscribe to the service.
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