Netflix to Abandon Its Ad-Free Basic Plan, Scraps It Off Only for New Users
Netflix has always been the one to put efforts into growing its viewership. Whether it be a platform to increase engagement with already existing users, or very smart marketing strategies to promote its shows, this streaming giant has a penchant for experiments. And while Tudum provides for fans engagement, changing their pricing model attracts new users. Netflix stays upbeat, always. This time, they chose to make some changes to their ever-evolving landscape of subscriptions. This change is not about dropping any fresh subscription tiers, but narrowing it down by one.
In a premeditated attempt to increase their revenue, the platform once again scrapped its basic plan in these two new countries for their new users.
Netflix decided to face losses head-on by doing this
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Netflix decided to follow suit with their change in subscription plans in US and UK, after introducing it in Canada a month ago. In a report by Discussing Film, streaming media company decided to remove its cheapest ad-free plan. The users will either have to choose the Standard Plan with Ads or go for a tier-up for the Standard Plan without Ads. The previous middle ground between the two, which was Basic Plan without Ads is no longer available. Priced at $9.99, it proved to be a sweet deal striking balance between enjoying ad-free streaming and minimal cost. But now, users can only choose between $6.99 and $15.49, or higher.
It is also important to note that the change is only applicable to new users joining the platform. They could be brand-new users or those returning to the OTT platform after canceling their subscriptions earlier. Basically, non-HD streaming on a single device with no ads does not exist anymore. So, you either join the more expensive tier and help induce revenue that way, or join the lower one to support Ads.
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Though the recent move could come as a surprise to many, it had already rolled it out in Canada before. And, this isn’t the only crackdown users saw coming to Canada before it was carried out in the US.
Canada is testing the waters for all new experiments
Recently, Netflix saw a positive response to one of their earlier shake-up subscription plans. They decide to charge every user, who did not stay in the same location as the main account for more than 31 days, an extra $7.99. But despite facing some backlash, the tightening of their password-sharing conditions proved to be fruitful. And this profit-inducing attempt tested the waters in Canada first, again. The smaller population favors a proper behavioral analysis before they rolled it out in a much denser country like the USA. So for any Netflix shakeup updates, we need to keep an eye on US’s favorite neighbor.
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What do you think about Netflix’s change in plans? Let us know your thoughts in the comment section below.
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