(Reuters) – Netflix is no longer offering its basic plan in the U.S. and UK. The plan allowed users to watch shows and movies without commercials but was removed to attract more subscribers to its ad-supported tier.
According to Netflix’s website, the $9.99-a-month basic plan is no longer available to new or returning members. Existing users on the plan can still stay on it until they make changes or cancel their account.
Last November, Netflix introduced a $7-per-month option with commercials in 12 markets, including the U.S., to compete with other streaming services and generate additional revenue streams.
In May, Netflix also implemented measures to prevent password sharing. Users who share an account outside the same home now have to pay an extra fee. This led many users to switch to the cheaper ad-supported tier.
Macquarie analysts believe that the crackdown on password sharing will attract more users to the $6.99 ad-supported base and increase advertising revenue for Netflix.
In a previous announcement, Netflix stated that the ad-supported tier has nearly 5 million active users per month, showcasing the wide range of programming options to potential advertisers.
Today, Netflix will release its second-quarter results, and investors will evaluate the impact of the ongoing strike in Hollywood on the company’s performance.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri)
Credit: The Star : Tech Feed
