Top line
Netflix will eliminate its cheapest ad-free plan for all customers in the United States, the streaming giant announced Thursday, just a year after the company, which once forsook ads, removed the option for new customers, marking the latest price hike in the ongoing streaming wars.
Netflix had previously removed its ad-free subscription plan for new customers in the United States, and … (+)
Highlights
Netflix will phase out its $11.99-per-month base plan in the United States and France for all customers, the company announced in a filing with the Security and Exchange Commission, forcing subscribers to upgrade to a more expensive plan from the company if they want to keep their subscriptions.
The move means existing Basic plan subscribers can now upgrade to Netflix’s Standard plan ($15.49 per month), which includes ad-free movies and TV shows for up to two devices at a time for up to two account members, or its Premium plan ($22.99), which offers up to four simultaneous devices for up to three account members.
Customers also have the option to opt for Netflix’s Basic plan at $6.99 per month with ads.
With the removal of its base plan for all U.S. customers, Netflix has completely eliminated its cheapest ad-free offering, a year after removing the plan for new (and non-existing) customers in the U.S. and U.K., and 13 months after removing the option for customers in Canada.
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Key context
Streaming providers are increasingly turning to ad revenue and price hikes to stay profitable in the face of growing competition from rivals. Paramount+, the streaming service run by CBS-owner Paramount Global, was the most recent to do so, announcing last month that it would raise the monthly price of its Paramount+ with Showtime by $1 to $12.99, and to $7.99 for its ad-supported plan. Warner Bros. Max (formerly HBO Max) also raised its prices this year to $16.99 per month for ad-free streaming and $20.99 for its ad-free plan, joining NBC’s Peacock ($7.99 with ads, $13.99 without). In another move aimed at boosting subscriptions, Netflix also began cracking down on password sharing, a customer loophole that has hampered the company for years, saying it would limit U.S. users to a single household.
Large number
277.65 million. That’s the number of subscribers announced by Netflix on Thursday, surpassing its competitors Disney+, Peacock and Max.
Further reading
News Source : www.forbes.com
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