Netflix, a prominent player in the streaming industry, has made a significant alteration to its subscription plans without much fanfare. The company has done away with its most affordable advertisement-free plan, which used to cost $9.99 per month, for new customers in the United States and the United Kingdom.
Instead, new users are now presented with two options: a more expensive monthly plan or a lower-cost plan that includes advertisements. This strategic move reflects Netflix's response to the intense competition in the streaming market.
New customers can choose between three subscription plans: a $6.99 per month "Standard with Ads" plan, which is the cheapest option but includes advertisements, a $15.49 per month "Standard" plan that allows two simultaneous streams and provides 1080p full HD video quality, and a $19.99 per month "Premium" plan that offers up to four simultaneous streams and 4K Ultra HD video quality.
This decision comes in the wake of a similar action taken in Canada last month. However, existing Netflix customers are unaffected by this change and can continue with their current plans.
By making this move, Netflix aligns itself with its Disney-controlled rivals, Hulu and Disney+, which offer both ad-based subscription options and more expensive ad-free plans.
Similarly, Warner Bros. Discovery's platform Max provides a range of monthly subscriptions starting at $9.99 per month with ads and $15.99 without ads. Additionally, some established broadcasters offer more budget-friendly services, such as NBCUniversal's Peacock and Paramount Global's Paramount+.