Netflix dropping Basic ads-free tier, forcing users to choose a more profitable tier

AppleInsiderAppleInsider
Posted:
in General Discussion edited January 24

The endless pursuit of satisfying shareholders has led Netflix to delete its cheapest ads-free tier, leaving users to choose between spending more money or more time with ads.

The red 'N' Netflix logo on a black background
Netflix



Netflix stopped letting new users sign up for the "Basic" ads-free tier in the Summer of 2023, just before its ad tier launched. It left existing customers alone at the time, but that will change in 2024.

According to The Verge, Netflix made the announcement while reporting its earnings. The ads-free Basic tier would be phased out entirely, starting with the UK and Canada in Q2 2024, with the US and other countries to follow.

The move is meant to push users to more lucrative subscriptions. They will have to choose to either spend $15.49 on 1080p ads-free content or $6.99 for ad-supported content.

Netflix's statement on the matter:

In Q4'23, like the quarter before, our ads membership increased by nearly 70% quarter over quarter, supported by improvements in our offering (e.g., downloads) and the phasing out of our Basic plan for new and rejoining members in our ads markets.

The ads plan now accounts for 40% of all Netflix sign-ups in our ads markets and 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.



Netflix continues to increase prices and change its subscription tiers to ensure the swath of content it buys can be paid for with maximum profits. Though, like the cable giants Netflix hoped to overthrow, it too is approaching the dangerous threshold of "thousands of channels with nothing to watch."

Netflix also announced it struck a 10-year deal with WWE to air "Monday Night RAW." Time will tell how much that deal will cost consumers when Netflix inevitably raises prices again.



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Comments

  • Reply 1 of 10
    steveausteveau Posts: 299member
    Looks like more "switchers" heading over to Apple TV. I don't have Netflix and never miss it.
    flashfan207ForumPostStrangeDayslolliverchasmwatto_cobra
  • Reply 2 of 10
    wozwozwozwoz Posts: 263member
    > "leaving users to choose between spending more money or more time with ads"

    There is of course a third option, which is to leave Netflix and find something better to do with your time. Most of their content, imo, is very mediocre, and there have only been a couple of series that I have been interested to switch it ON or, and then OFF again when done.
    flashfan207tokyojimuForumPostStrangeDayslolliverwatto_cobra
  • Reply 3 of 10
    Nelson1986Nelson1986 Posts: 4member
    After almost 15 years of having Netflix we cancelled a few months back - haven’t been missing it either.

    With all of the price increases & lack of competitive tier options it wasn’t worth it anymore. It’s just my wife & I, but we want 4K. Netflix makes you pay for the 4-screen tier, but won’t let you share it. They have become quite the scam in my opinion.

    Loving Apple TV+ much better & still sharing Disney plus, Prime & Hulu with other np  
    flashfan207ForumPostStrangeDayslolliverchasmwatto_cobra
  • Reply 4 of 10
    ktappektappe Posts: 824member
    This is the very thing that's making me cancel Amazon Prime this coming Monday (the day they add ads to Prime Video.) If these companies wanted to wean us off of all the streaming services, they're finding a way to do it. People hate ads.
    ForumPostlolliverchasmwatto_cobra
  • Reply 5 of 10
    charlesncharlesn Posts: 842member
    wozwoz said:
    > "leaving users to choose between spending more money or more time with ads"

    There is of course a third option, which is to leave Netflix and find something better to do with your time. Most of their content, imo, is very mediocre, and there have only been a couple of series that I have been interested to switch it ON or, and then OFF again when done.
    Gotta love clueless, inane comments like "most of their content, imo, is very mediocre." Netflix has 36,000 hours of content stretching over 6,500 series, movies and specials. If you started watching today, 24/7, and never slept, it would take you four years to watch all of it. Just an incredible feat that the poster has seen most of it, enough to judge it as very mediocre. I'd say a call to the Guinness Book is in order asap!
    watto_cobra
  • Reply 6 of 10
    StrangeDaysStrangeDays Posts: 12,886member
    charlesn said:
    wozwoz said:
    > "leaving users to choose between spending more money or more time with ads"

    There is of course a third option, which is to leave Netflix and find something better to do with your time. Most of their content, imo, is very mediocre, and there have only been a couple of series that I have been interested to switch it ON or, and then OFF again when done.
    Gotta love clueless, inane comments like "most of their content, imo, is very mediocre." Netflix has 36,000 hours of content stretching over 6,500 series, movies and specials. If you started watching today, 24/7, and never slept, it would take you four years to watch all of it. Just an incredible feat that the poster has seen most of it, enough to judge it as very mediocre. I'd say a call to the Guinness Book is in order asap!
    Still checks out — just because it’s a huge buffet doesn’t mean it’s gourmet. So much reality tv, sitcoms, murder docus, and overseas licensed stuff like police procedurals. To many people that’s just all junk. 

    They have their standout hits, like Stranger Things, but they’re not the norm. And compared to all that junk…rare. 

    Better to turn it off & on occasionally. 
    lolliverwatto_cobra
  • Reply 7 of 10
    Wesley HilliardWesley Hilliard Posts: 190member, administrator, moderator, editor
    charlesn said:
    wozwoz said:
    > "leaving users to choose between spending more money or more time with ads"

    There is of course a third option, which is to leave Netflix and find something better to do with your time. Most of their content, imo, is very mediocre, and there have only been a couple of series that I have been interested to switch it ON or, and then OFF again when done.
    I'd say a call to the Guinness Book is in order asap!
    No need to be an ass. But in reality when you have 36,000 hours of content, statistically most of it will be mediocre at best. And that's being generous. For me, out of the 6,500 series on the platform, I find about 10 worth paying to see. 

    To each their own.
    lolliverchasmmuthuk_vanalingamwatto_cobra
  • Reply 8 of 10
    zeus423zeus423 Posts: 242member
    Netflix is the reason I can't do ads anymore. I'll find something else, thank you very much.
    lolliverchasmwilliamlondonwatto_cobra
  • Reply 9 of 10
    AppleishAppleish Posts: 692member
    They forced us to choose no Netflix.
    williamlondonwatto_cobra
  • Reply 10 of 10
    chasmchasm Posts: 3,306member
    I’m sure Netflix must have some compelling content (beyond ‘Stranger Things’) that I’d find interesting, but having scrolled through the feature pages when I was staying with a friend who has it not too long ago, there wasn’t much there that grabbed me.

    Certainly not enough to watch even a single ad. Same reason I’ll never go back to cable.

    A lot of these streamers appear to have forgotten why people cut the cord on cable, don’t they?

    Thanks to Apple TV and other services that have no ads at all, don’t charge extra for 1080p (!) or 4K, and yet still somehow manage to have good content and are priced reasonably.
    steveauwilliamlondonwatto_cobra
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