Netflix axes cheapest ad-free plan in the US and UK

nme.com:

Netflix has dropped its cheapest ad-free plan in the US and UK.After it was first phased out in Canada last month, the basic ad-free tier which cost £6.99 in the UK and $9.99 in the US is no longer available in both countries for new and rejoining members.Those who are currently subscribed to the plan however will be able to keep the subscription, as long as you don’t cancel or change plans.In the company’s earnings call report posted on Wednesday (July 19), Netflix wrote: “In Q1, we lowered prices in a number of less penetrated markets, and in Q2, we phased out our Basic ads-free plans for new and rejoining members in Canada (existing members on the Basic ads-free plan are unaffected).

We’re now doing the same in the US and the UK.“We believe our entry prices in these countries – $6.99 in the US, £4.99 in the UK and $5.99 in Canada – provide great value to consumers given the breadth and quality of our catalogue.”With the removal of the basic ad-free plan, Netflix now offers three subscription tiers; the £4.99/$6.99 per month ad-supported plan, the £10.99/£15.49 ad-free standard plan, and the £15.99/$19.99 per month premium tier which supports improved video quality.In the same report, Netflix said it saw the addition of 5.9million subscribers globally since March, following the streaming service’s crackdown on password sharing between households.