Netflix
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The never-ending quest to please shareholders has led Netflix to remove its cheapest ad-free tier, leaving users with the choice between spending more money or spending more time with advertising.
Netflix stopped allowing new users to sign up for the ad-free Basic tier in the summer of 2023, shortly before the ad-supported tier launched. It left existing customers alone at the time, but that will change in 2024.
Netflix made the announcement while reporting its earnings, according to The Verge. The ad-free base tier will be phased out entirely, starting in the UK and Canada in the second quarter of 2024, followed by the US and other countries.
This step is intended to push users towards more profitable subscriptions. They'll have to choose between spending $15.49 on 1080p ad-free content or $6.99 on ad-supported content.
Netflix Statement on this matter:
In the fourth quarter of 2023, consistent with the previous quarter, our advertising campaign participation increased by nearly 70% compared to the previous quarter , supported by improvements to our offering (such as downloads) and the phasing out of our Basic Plan for new and rejoining members in our advertising markets.
The advertising plan currently accounts for 40% of all Netflix sign-ups in our advertising markets, and we plan to phase out our basic plan in select advertising countries, starting with Canada and the UK in the second quarter. and take it from there.
Netflix continues to raise prices and change subscription tiers to ensure that the content it purchases gets the best value for money. However, like the cable giants Netflix hoped to dethrone, it too is approaching the dangerous threshold of “thousands of channels with nothing to watch.”
Netflix also announced a 10-year deal with WWE to broadcast Monday Night RAW. Time will tell how much this deal will cost consumers when Netflix inevitably raises prices again.
