Netflix is discontinuing its lowest-priced ad-free plan in the UK and Canada. Users on the Basic tier in those markets are receiving notifications to either upgrade to a higher-cost option or accept ads. The co-CEO of Netflix, Greg Peters, explained that these price hikes are in place to help cover the costs of a wider range of content.
In Canada, users have reported receiving messages indicating that their Basic plan has been discontinued and encouraging them to switch to a new, more expensive plan with upgraded features. In the UK, similar messages have prompted jokes from users about choosing to save 100% on their new plan by not upgrading.
While Netflix stopped offering the Basic plan to new and returning users last year, existing subscribers may remain on their plan until it is changed or canceled. Peters mentioned earlier this year that the company was planning on retiring the Basic option in favor of more revenue-generating alternatives.
With the rise in prices for streaming services across the board, Netflix is not alone in increasing costs for its subscribers. Ten of the top services have raised prices at least once in the past year. This news comes in light of the latest price hike from a competitor, Max, which went into effect recently.
It is notable that Mathias Döpfner, CEO of Business Insider’s parent company, Axel Springer, is a member of Netflix’s board.
