Netflix is getting rid of its cheapest ad-free plan, pushing subscribers to choose a new option starting this month.
Users on Reddit began reporting that they were being prompted to switch plans because their current Basic Plan would be phased out by July 13th. This change was announced earlier, so it didn’t come as a surprise. Initially, it seems to affect subscribers in the UK and Canada, but it’s also coming to the US soon.
It’s clear that Netflix wants subscribers to either pay more for a higher-tier plan or opt for the new ad-supported plan. Either way, Netflix benefits, though the same can’t be said for subscribers. But that’s capitalism.
For years, it has been evident that the ad-free, subscription-based streaming model would eventually lose its momentum. The traditional ad-based revenue model was destined to rise again, and Netflix, the leading streaming service, is now embracing it.
In late 2022, Netflix introduced an ad-supported plan for those willing to pay less and watch a few commercials. While some, like me, prefer to avoid ads altogether, many have embraced this option.
There are now 40 million subscribers to the ad-supported plan, proving it was a smart move for Netflix. The success of ad-supported content has been evident for decades, but Netflix, always aiming to disrupt, had to innovate before following this well-established model.
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