Netflix is continuing to sunset its Basic ad-free option for customers, extending the process to existing subscribers in the US and France. The streaming giant announced the move in a letter to shareholders on Thursday and discussed it during its second-quarter earnings call. Affected customers in the US -- legacy users who haven't canceled their Basic ad-free subscriptions -- will begin to see emails encouraging them to select a new plan.
The announcement about sunsetting this subscription plan is not new. The streamer dropped its Basic commercial-free tier for new subscribers in the US and UK in July 2023 and followed up last October with a price increase for legacy customers with the subscription. The price was bumped up to $12 per month for existing customers in the US who opted to keep the plan, with increases in the UK and France as well.
The streamer initially announced its decision to completely phase it out in a letter to shareholders earlier this year, and started the permanent discontinuation in the UK and Canada in the second quarter of 2024. Users have begun to see on-screen notifications showing a deadline to upgrade subscriptions. Additionally, Netflix started moving forward with shutting down the Basic subscription option in select regions where the ad-based version is available.
With the new change this year, US subscribers will have three plans to choose from: Basic With Ads ($7 per month), ad-free Standard ($15.50 a month) or Premium ($23 per month). If you want to share your account with someone outside your household, there's an optional extra member fee of $8 per month. Netflix's ad-based plan is one of its most popular -- and cheaper than rivals Disney Plus and Hulu -- but we'll note that not every title is available to stream on the plan. You must upgrade to access certain TV shows and blockbuster movies.
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During Netflix's earnings call in January, co-CEO Greg Peters highlighted the value of the ad-supported subscription versus the Basic plan, pointing out that the $7 option offers two streams, better video quality and downloads.
The streaming service cited its entertainment value and highlighted its expanding video games lineup and live sports programming. After testing the live streaming waters with a comedy special and golf tournament, Netflix is diving deeper into live sports. It streamed a tennis match between Rafael Nadal and Carlos Alcaraz this past March, and the media giant inked a deal with World Wrestling Entertainment.
Starting January 2025, wrestling fans in the US, UK, Canada and Latin America can watch live Monday Night Raw matches on the platform, with additional regions to come. Netflix will also be the destination for international subscribers who want to watch Smackdown, WrestleMania and other popular WWE shows.
Be sure to check out our coverage of Netflix's games and what ad-based subscriptions offer across the streaming universe.