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Netflix drops basic streaming plan in push for more users of ad-supported plan


Netflix Inc. has dropped its cheapest streaming plan without ads in the U.S. and U.K. in an apparent move to push consumers to sign up for its advertising-supported service.

The company’s
NFLX,
-0.38%

Basic plan, which costs $9.99 a month in the U.S. and £6.99 a month in the U.K., is no longer available for new or rejoining members in those countries. Current Basic members can stay on the plan until they change plans or cancel their account, according to Netflix.

Netflix dropped the Basic plan in Canada last month.

Shares of Netflix are flat in early afternoon trading Wednesday.

Wolfe Research analyst Peter Supino predicted that the decision to ditch the Basic plan could increase global revenue by up to 4% and improve global earnings before interest, taxes, depreciation and amortization (Ebitda) by as much as 11% in 2026. “This should be a meaningful tailwind to forecasts,” he wrote in a note Wednesday.

The elimination of the Basic plan, which comes hours before the company reports fiscal second-quarter results, is likely to boost membership on the ad-supported Standard With Ads plan. Since that plan was introduced in November, Netflix has signed up more than 5 million customers, with 25% of new subscribers opting for the package.

During its earnings call in April, Netflix said the ad model generated higher overall average revenue per customer than the $15.49 monthly Standard plan.

Netflix has said the “vast majority” of movies and TV shows are available on ad-supported plans, but a small number are not because of licensing restrictions.

The company’s ad-supported plan is available in the U.S., U.K., Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico and Spain.



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