Just weeks after it was revealed that Netflix is contemplating a free ad-funded version of their platform in Europe and Asia, it seems that those currently looking for an ad-free option in the U.S. will be forced to pay more in the future. During their latest earnings call announcements it was revealed that the streamer’s basic $11.99 per month tier is being phased out. This means that subscribers will only have the option of paying $6.99 for the ad-supported tier, or have to shell out at least $15.49 for the standard ad-free option.
Netflix’s basic tier allows a single stream per household, while the higher priced options allow multiple users to watch different content at the same time. For those who live alone, or have no need for multiple streams, it could seem that the hike is just another way of squeezing more money out of current subscribers. During the call, Netflix co-CEO Greg Peters addressed the changes, saying:
“Essentially, we’re providing them a better experience, two streams versus one. We’ve got higher definition. We’ve got downloads. And, of course, all at a lower price, $6.99 in the United States. We think that represents a tremendous entertainment value. And it includes ads. And for members who don’t want that ads experience, they, of course, can choose our ads-free standard or premium plans as well.”
Netflix subscribers have certainly grown used to having their prices hiked. In the past year, many subscribers who shared their account with family members in another household were forced to buy an add-on subscription when Netflix clamped down on password sharing. While that change caused widespread outrage on social media, the result was a huge boost in subscriber numbers for Netflix, despite their original fears that it would lead to a loss.
Netflix Continues to be the Biggest Streaming Platform
Although the world of streaming has become a hugely crowded market in the last several years, Netflix has continued to deliver the biggest viewerships, the biggest stars, and the largest amount of content in one place. From shows like Wednesday and Stranger Things, to movies such as Red Notice and the recent French-language horror Under Paris, Netflix has the ability to draw in audiences in large numbers with a constantly changing roster of new offerings.
While the news of the basic tier being removed in the U.S. has not been received well, it was to be expected, as it had already been announced that the same tier would be vanishing from Europe and Asia a couple of weeks ago. However, reports have already revealed that Netflix are expected to start a free ad-supported version of their content in these same locations in a bid to steal away viewers from network television channels. So far it has not been announced whether this is something that could also arrive in the U.S., much of the venture relies on the launch of Netflix’s own advertising platform, which is currently scheduled for late in 2025.
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For now, though, it seems like another forced price increase for those wanting to ditch the ads is causing plenty of noise for the world’s largest streaming platform. Exactly how this latest change impacts subscriber numbers is something that we will find out in due course, but Netflix’s bosses appear to be confident that the quality of content being offered is enough to coax people to stick with the platform, even if it means shelling out a little more each month.