Monday, 23 Dec 2024

Netflix scraps cheapest ad-free plan amid cost of living crisis

Netflix has removed its basic plan in the UK that allowed users to watch shows and movies without adverts.

Subscribers will now be faced with the tricky choice of switching to a cheaper plan interrupted by ads or paying more for the ad-free Netflix we all know and love.

The company said on its website the £6.99 Basic plan would no longer be available for new or rejoining members. Users who are already on the plan could continue to remain on it until they change plans or cancel their accounts.

Last November, the streaming giant launched a cheaper, ad-supported subscription plan in the UK for just £4.99 per month. It was designed to attract more customers and add a new revenue stream as competition for online viewers intensified.

Netflix also cracked down on households sharing passwords in May and forced users who share an account outside the same home to pay an additional fee, which in turn triggered droves of users to sign up for its cheaper plan with ads.

People sharing an account with someone outside their household for free were told they need to either kick them out or pay an extra £4.99.

Now the company is effectively winning the battle against password borrowers with nearly six million of them resigning to pay up for the service.

The move has resulted in an addition of 5.9 million new paying subscribers from April through June. The company ended last month with more than 238 million subscribers which was a bigger increase than expected.

The move extended to customers in 103 other countries including the United States, Britain, France, Germany, Australia, Singapore, Mexico and Brazil.

Netflix with ads

The new option means significant savings for customers currently paying £6.99, £10.99 or £15.99 on one of the company’s three plans.

Netflix has said that customers can expect to see ads before or during most TV shows and movies. Ads will not be shown on Kids profiles.

A ‘small number’ of titles might also not be available on the ad-supported plan due to licensing restrictions. These titles will appear with a lock icon when you search or browse Netflix.

Users on the cheapest plan will also not be able to download content to watch on the go.

While you can still watch Netflix on 2 supported devices at a time on the ad-supported plan, you will not be able to add people outside your household by paying the extra £4.99.

Also, you cannot skip or fast-forward ads, but you can pause playback during an ad.

So if you want an ad-free Netflix again, that will cost you £10.99.

Metro.co.uk has reached out to Netflix for comment.

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