Netflix Phases Out $9.99 No-Ad Plan in US, UK, Boosting Ad-Supported Tiers

Netflix has discontinued its $9.99 no-ad subscription plan in the United States and the United Kingdom, emphasizing ad-supported options to encourage increased subscriber sign-ups, as shown on its website's pricing page.

On its official website's plans and pricing page, Netflix revealed the changes in its ad-free tier in the U.S. and the U.K. The streaming giant stated that the $9.99 basic plan for the no-ad option is no longer offered to new or returning subscribers.

Fox10 News The company explained that existing subscribers who selected the plan are unaffected. They may continue with this option unless they decide to change or cancel this plan. However, they must remember that once they cancel, they cannot avail of it anymore.

The ad-free basic plan was first removed in Canada last month, and now Netflix is phasing out the same subscription option in the U.S. and U.K. With the change, the said tier with no ads that costs $9.99 in America and £6.99 in Britain is not offered to new and rejoining members.

As per NME, the available subscription plans in the regions now are the ad-supported tier which costs £4.99/$6.99 per month, the standard ad-free plan at £10.99/£15.49, and the premium option at £15.99/$19.99 per month. The most expensive tier provides viewers with the extra benefit of improved video quality.

At any rate, in Netflix's earnings call report that took place on Wednesday, July 19, the company said, "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)."

It added, "We are now doing the same in the U.S. and the U.K. and we believe our entry prices in these countries – $6.99 in the U.S., £4.99 in the U.K. and $5.99 in Canada - provide great value to consumers given the breadth and quality of our catalog."

Photo by: CardMapr.nl/Unsplash