Editor's note: we've removed incorrect information about the Basic tier being discontinued in Australia from June 4 onwards. TechRadar apologizes for this oversight.
Update: Responding to TechRadar's request for comment about when the Basic tier will be retired in the US and other international territories (excluding the UK and Canada), a Netflix representative said: "We don't have anything to share on other countries at this time."
Netflix provided its brief statement after some US-based users directly reached out to me to confirm they haven't received a similar email about the forthcoming changes to Netflix's subscription options. Until Netflix states otherwise, then, US users won't be automatically switched over from the Basic tier to the Standard with Ads plan on June 4.
Original story follows.
Great, so we either have to sit through ads every so often, or pay twice as much to get the Standard/Basic experience that we already do now (albeit only for another few weeks)? Nah, I think I'll pass, Netflix. Cheers, though... pic.twitter.com/2zIo77Oz4lApril 30, 2024
Furious Netflix fans have threatened to close their accounts after the streaming giant confirmed it's getting rid of its non-ad supported Basic tier.
In an email sent to international customers – a correspondence that I, as a UK viewer, also received – Netflix revealed that it's ending support for its popular Basic subscription in the UK and Canada on June 4. Anyone who's still subscribed to this tier, myself included, will be automatically switched over to Netflix's Standard with Ads offering on the same date.
Have what you have now but pay twice the price! What a steal. Also love how they've requisitioned "lower price" and "more devices" to not mean that at all.April 30, 2024
The announcement comes nine months after Netflix removed the option for new subscribers to purchase its cheapest ad-free plan globally. And, even though the streaming giant confirmed (in January) that it would be retiring the Basic tier in mid-2024, the sudden revelation that it's getting rid of the plan has come as a shock to Netflix's increasingly aggrieved fanbase.
In a bid to temper the inevitable backlash, Netflix tried to put a positive spin on the fact that millions of users will be forced to subscribe to its Standard with Ads subscription, aka the streamer's new cheapest plan.
For one, Netflix confirmed that fans would save money by the switchover – in the UK, for example, Basic subscribers currently pay £7.99 a month, but you'll soon see that price slashed by 35% (down to £4.99 per month) with their new subscription. Netflix also revealed that any new Standard with Ads users will also be upgraded from the Basic tier's 720p video quality to full HD (1080p), and that you'll be able to stream/download the best Netflix shows, best Netflix movies, and best Netflix documentaries on two devices in the same household. The cost of enjoying these perks? Being made to sit through a certain number of unskippable ads for every hour of content you watch.
Netflix getting rid of their basic plan and only giving you the option of cheaper but with adverts or £10.99 a month without is honestly daylight robberyApril 29, 2024
Even with these benefits and a cheaper price point, however, fans across the UK and Canada are not happy about losing access to the Basic tier. Indeed, users have taken to social media to vent their frustrations over the world's best streaming service's latest bright idea, with many simply stating that they plan to cancel their subscriptions, rather than be strong-armed into having to subscribe to Netflix's ad-supported tier.
Why is Netflix getting rid of its Basic subscription tier?
So, why is Netflix erasing its Basic tier option from history? Unsurprisingly, it all comes down to money. According to Reuters, Netflix is set to make around $1 billion in ad revenue in 2024 – a 50% increase on what it earned from advertisements in 2023. Netflix continues to defy critics where its divisive ad-supported tier is concerned, too, with Variety suggesting that over 20 million US-based fans are currently signed up to Standard with Ads – a 27% share of Netflix's total US userbase.
With that cash injection bolstering its revenue streams, Netflix wants maximize exposure to ads on its platform to not only appease companies whose ads currently air on the service, but to also entice other corporations to similarly showcase their products to consumers.
@Netflix you are pissing me off. Removing my basic plan and forcing me to either pay more or put up with shitty ads. There is more competition out there now so why treat long term customers like this?April 29, 2024
And hey, if some fans don't want to sit through ads while they watch Netflix, the entertainment giant has an answer for that, too. Removing its Basic tier means that customers will have to sign up to one of its more expensive Standard or Premium tiers. Again, anyone who purchases one of these subscriptions is helping to line Netflix's pockets. In short: it's a monetary win-win for Netflix to permanently get rid of its Basic tier.
Pleased though its executives and shareholders will be by this additional income, however, Netflix is walking a dangerous path where it could really start to lose trust in consumers. Users have already had to deal with Netflix's password sharing crackdown and yearly price hikes across the US, UK, France, and other nations, so there's only so much more that some customers will take before they decide to walk away from Netflix for good.
Time will tell if Netflix's latest international rollout proves to be the final straw for many non-US users but, if the streaming titan hopes to hold off its rivals' attempts to dethrone it as the world's most popular platform, it can't keep treating its fanbase with such disdain.
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