Netflix has removed its original plan in the US and UK in which users could watch shows and movies without commercials, as the company tries to attract more customers to its ad-supported tier.
The company said on its website that the $9.99 per month (roughly Rs. 820) Basic plan will no longer be available to new or rejoining members. Users who are already on a plan can stay on it until they change plans or cancel their account.
The streaming video pioneer launched a $7-per-month (roughly Rs. 574) option with ads in 12 markets, including the US, last November as an alternative to ad-free plans. It was designed to attract more customers and add a new revenue stream as competition for online audiences intensified.
so did netflix broke In May users sharing passwords across households and accounts outside the same household were forced to pay additional fees, resulting in a large number of users signing up for its cheap AD-level base.
“We expect the most important aspect of Netflix’s crackdown on password sharing will be the catalyst that will attract more users to its $6.99 ad tier base, generating more advertising revenue,” the Macquarie analysts said.
In May, the company said that the ad-supported tier had reached about 5 million active users per month, emphasizing the breadth of its programming for potential advertisers.
The company is scheduled to report its second-quarter results after the market today, where investors will assess the risks from the ongoing strike in Hollywood.
© Thomson Reuters 2023