Netflix Axes Basic Subscription Plan in US and UK
In a recent development, Netflix has culled its basic subscription plan for new subscribers in the United States and the United Kingdom. Previously, for a monthly fee of $9.99 in the U.S. and £6.99 in the U.K., this tier allowed users to stream Netflix content on a single screen at 720p quality.
The elimination of the basic plan follows a similar move by Netflix in Canada. The discovery was made by the U.K.-based website Code Busters, suggesting that this change is part of a broader strategy by the streaming giant. Analysts are speculating that Netflix may be planning to remove the basic plan in all territories where it has launched an ad-supported standard plan.
While the change does not affect existing subscribers who can continue with their current basic plan, the option will not be available for new or rejoining members. The Netflix support page now states, “The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.”
With a shift towards an ad-supported standard plan, Netflix appears to be moving away from its lower-cost tier. The streaming giant's decision might be a strategic move to increase revenue by pushing users towards higher-priced plans. As the competition in the streaming domain intensifies, Netflix is undoubtedly making changes to stay ahead and maintain its dominant position.
It's your turn to share your thoughts now. What do you make of Netflix’s decision to remove its basic plan in the U.S. and U.K.? Do you think it will affect its competitiveness? Leave a comment below and let us know your thoughts.