Netflix’s website notes that its $9.99-per-month ad-free plan is “no longer available for new or rejoining members,” but current customers can remain on the plan so long as they don’t cancel or change plans. The change means the cheapest ad-free tier for new members is now $15.49 per month. The company confirmed the change in a Wednesday letter to shareholders. After phasing out the basic ads-free plan for new and rejoining members in Canada, “we’re now doing the same in the US and the UK,” the report reads. “We believe our entry prices in these countries – $6.99 in the US, £4.99 in the UK and $5.99 in Canada – provide great value to consumers given the breadth and quality of our catalog.” What was included in Netflix’s $9.99 basic tier? The $9.99 basic tier allowed customers to watch content without ads on one device at a time. Its demise comes shortly after Netflix launched its $6.99 ad-supported tier in November, which features an average of up to four to five minutes of ads per hour. The new pricing plan drew in nearly five million global monthly active users in just six months, with more than a quarter of new signups choosing the ad-supporter plan in countries where it’s available, according to a May press release. While Chief Financial Officer Spence Neumann said the ad-supported plan continues to bring in a higher average revenue per membership than Netflix’s standard plan, a company statement said its current ad revenue “isn’t material” because the membership base is still small. “Building an ads business from scratch isn’t easy and we have lots of hard work ahead, but we’re confident that over time we can develop advertising into a multi-billion dollar incremental revenue stream,” the statement reads. Netflix has lowered the boom on passwordsharing. What you should do now. Netflix subscriptions up:How’s that Netflix password crackdown going? Fans are angry, but subscriptions are up What Netflix plans are still offered? Netflix plans still offered in the U.S. include: A standard plan with ads for $6.99 per month that includes “all but a few movies and TV shows” due to licensing restrictions. Subscribers cannot download shows or movies. A standard plan without ads for $15.49 per month that lets users watch and download on two devices at a time in full HD. Customers can add one extra member who doesn’t live in their household. A premium plan without ads for $19.99 per month that lets users watch on four supported devices and download on six devices at a time in Ultra HD. Customers can add up to two extra members who don’t live in their household. Netflix earnings Also Wednesday, Netflix revealed that it added 5.9 million subscribers in the second quarter. Despite the boost, shares slipped during after-hours trading after the company revealed it missed revenue expectations. CFO Neumann said most of the company’s revenue growth this year comes from new paid memberships, largely driven by the company’s crackdown on password sharing. 100% seo friendly unique news full article ChatGPT
“Netflix Revamps Pricing Plans for 2023: Cheapest Ad-Free Tier Now at $15.49 per Month”
In a recent update, Netflix has decided to make changes to its pricing plans, impacting new subscribers in the United States. The streaming giant has removed its $9.99-per-month ad-free plan for new and rejoining members, signaling a shift in its subscription offerings. However, existing customers can continue on this plan if they choose not to cancel or switch to a different one. As a result, the most affordable ad-free tier for new members is now set at $15.49 per month.
The company confirmed this alteration in a letter addressed to shareholders on a Wednesday. The move follows a similar phase-out of the basic ads-free plan for new and rejoining members in Canada. Netflix justifies this pricing adjustment by highlighting the value it offers to consumers with its expansive and high-quality content library. In countries like the US, UK, and Canada, Netflix’s entry-level prices range from $6.99 to $5.99, providing subscribers with access to a diverse range of entertainment options.
Previously, the $9.99 basic tier allowed customers to enjoy content without advertisements on one device at a time. However, it has been discontinued as Netflix introduced a $6.99 ad-supported tier in November. This new plan showcases four to five minutes of ads per hour and has been a success for the company. It attracted nearly five million global monthly active users in just six months, with over a quarter of new sign-ups opting for the ad-supported plan in available regions.
While the Chief Financial Officer, Spence Neumann, indicated that the ad-supported plan generates a higher average revenue per membership compared to the standard plan, Netflix acknowledges that their current ad revenue is not yet significant due to the small membership base. However, the company remains optimistic about the future prospects of its advertising venture, aiming to develop it into a multi-billion dollar incremental revenue stream.
Despite the pricing changes, Netflix continues to offer various subscription plans in the US, each catering to different needs and preferences. The options include a $6.99 per month standard plan with ads, which covers a vast selection of movies and TV shows, though downloads are not permitted. A $15.49 per month standard plan without ads allows users to watch and download content on two devices in full HD quality, with the option to add one extra member outside their household. Additionally, a premium plan at $19.99 per month offers an ad-free experience, enabling viewing on four supported devices and downloads on up to six devices simultaneously in Ultra HD. Users can add up to two extra members who don’t reside in their household to this plan.
In the second quarter, Netflix revealed impressive growth, gaining 5.9 million subscribers. However, the company’s shares experienced a dip during after-hours trading as it missed revenue expectations. CFO Neumann attributed much of the revenue growth to new paid memberships, largely driven by Netflix’s crackdown on password sharing.
As Netflix continues to adapt its pricing and offerings, subscribers can expect to see more changes in the future, as the streaming giant strives to maintain its position as a leading entertainment provider in the ever-evolving digital landscape.
