In an attempt to get more customers to sign up for its ad-supported option, Netflix has gotten rid of the basic ad-free tier.
There is some good news, however, for the customers that currently have the basic ad-free plan. Netflix stated they will not be affected unless they cancel or change plans.
Now, if new or rejoining customers are searching for a cheap option, they will have to settle for the Standard with ads plan for $6.99 / month. If they want to avoid ads, their options are the Standard plan for $15.49 / month or the Premium plan for $19.99 / month.
According to CNBC, during last quarter’s earnings call, Netflix CEO, Spencer Neumann, said “the “economics” of its ad-supported plan were higher than the basic plan.
Netflix users are also getting used to the company’s other attempt at increasing revenue, the password sharing crackdown. Netflix made each account only shareable to the people in a household, forcing many users to create their own accounts.