Netflix, the world’s largest streaming platform, has recently changed it’s pricing plans for the US and UK regions. The streaming giant has stopped offering the $10 basic plan in both the United States and the United Kingdom. This leaves users with three options: they can choose the low-end $6.99 ad-supported plan or opt for the higher-end plans priced at $15.99 and $19.99, respectively.
This change was expected, as the company had already discontinued the $10 basic plan for Canadian users. It is anticipated that this pricing adjustment will also be implemented in other regions.
Existing subscribers on the $10 basic plan will not be affected unless they cancel or switch to a different pricing tier. However, new subscribers will no longer see the $10 basic plan as an option when signing up for Netflix. Instead, users in Canada, the United States and the United Kingdom will be presented with three pricing plans: the $6.99 ad-supported plan that was launched last year, the $15.99 standard plan without ads, and the $19.99 premium plan.
The ad-supported plan allows users to stream content in HD quality only and downloading content for later viewing is not available. The standard plan, on the other hand, offers Full HD streaming and allows users to download content for later viewing. Additionally, users on the standard plan can stream content on two devices simultaneously.
After a challenging first quarter in 2022, both in terms of revenues and new subscribers, Netflix has implemented several changes to boost revenue and attract more subscribers. One such change was introducing a low-tier ad-supported plan, similar to offerings from some of it’s competitors. The ad-supported plan costs $6.99 and includes ads during streaming. Users can expect around four minutes of ads per hour, with each ad lasting 15 to 30 seconds. Unlike YouTube, users cannot skip these ads and must watch them in their entirety.
Since its launch last year, the low-tier ad-supported plan has attracted nearly five million monthly active users as of May 2023. Notably, the average revenue generated from the ad-supported plan exceeds that of the standard plan.
Another significant change implemented by Netflix is cracking down on password sharing among users from different households. This crackdown on password sharing has been implemented globally and has yielded positive returns, as announced in the Q1 2023 report.
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