Breaking: Netflix Eliminating Cheapest Ad-Free Plan in Canada, Is United States Next?
As ad-supported streaming has increasingly come to occupy a larger corner of the market, a common refrain that has been heard from entertainment executives and analysts alike is that companies make more money off of ad-supported video-on-demand (AVOD) subscriptions than they do from ad-free plans. The reason simply being that while the AVOD options cost the consumer less than their premium counterparts, the platforms more than make up the difference in advertising dollars.
That very well might be the reason that Netflix has confirmed to CTV News that it is eliminating its Basic subscription option in Canada. The Basic plan is the cheapest ad-free option that the world’s largest streaming service offers, coming in at $9.99 per month in both Canada and the United States. According to CTV, Netflix has already eliminated the plan as an option for new subscribers and will be removing it as an option for current subscribers who would like to change their pricing plan “in the near future.” However, customers currently on the plan will be allowed to remain on the tier unless they cancel their subscription or change to another option.
With the elimination of the plan north of the border, customers will have to choose between the Basic with Ads plan for $6.99 per month or the Standard subscription for $15.49 monthly. Aside from the price difference and presence of commercials, the main differences between the two plans are that on the Standard tier, customers are able to watch two simultaneous streams vs. just one on Basic with Ads, and that Standard allows customers to download titles to watch offline, while the ad-supported tier does not.
What Are the Differences Between Netflix Subscription Plans?
| Tier | Price Per Month | Ads Per Hour | Streams | Video Quality | Offline Mode |
|---|---|---|---|---|---|
| Basic with Ads | $6.99 | 4-5 min. per hour | 1 | 1080p | No |
| Basic | $9.99 | N/A | 1 | 720p | Yes |
| Standard | $15.49 | N/A | 2 | 1080p | Yes |
| Premium | $19.99 | N/A | 4 | 4K+HDR | Yes |
Is Netflix Going to Eliminate the Basic Ad-Free Subscription Plan in the United States?
In February, Netflix began rolling out new password-sharing rules in Canada, almost four months before the same rules were implemented in the U.S. If the move to eliminate the Basic plan in Canada is a response to the results of the password rule changes in the country, it would make sense if the streaming giant followed suit domestically as well. While the two countries were on different timetables when it came to new password-sharing limitations, company executives noted that Canada was the best test-case for the United States, since they were such similar markets. As such, when Netflix reports quarterly earnings, it bundles the two nations into a single “UCAN” total.
Currently, new customers in the United States are still able to subscribe to Netflix’s ad-free Basic option, but the service is making it difficult for them to do so. On the screen where new customers are asked to pick a subscription plan, they are initially presented just with the Basic with Ads, Standard, and Premium options. It is only if they click on the “See All Plans” button beneath the original options that the Basic plan becomes available.
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The Streamable has reached out to Netflix to confirm the CTV News report and to see if the streamer has any plans to make similar subscription changes in the United States. However, as of publication, representatives for the service have not yet responded to our inquiry.
However, given the changing economics of the streaming industry and the new data that Netflix now has following a worldwide crackdown on password-sharing, it would not be a surprise if the service eliminates the Basic plan in the United States and in markets across the globe in the coming months.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.