In the UK and Canada, Netflix is discontinuing its lowest-priced ad-free plan. Users on the Basic tier in those markets are being notified to either upgrade to a higher-cost option or accept ads. Co-CEO of Netflix, Greg Peters, stated that these price hikes are necessary to cover the costs of a wider range of content.
In Canada, users have received messages informing them that their Basic plan has been discontinued and prompting them to switch to a new, more expensive plan with upgraded features. In the UK, similar messages have led to jokes from users about choosing to save 100% on their new plan by not upgrading.
Although Netflix stopped offering the Basic plan to new and returning users last year, existing subscribers may remain on their plan until it is changed or canceled. Peters announced earlier this year that the company was planning on retiring the Basic option in favor of more revenue-generating alternatives.
With streaming services becoming increasingly expensive across the board, Netflix is not alone in raising prices for its subscribers. Ten of the top services have raised prices at least once in the past year. This news comes after Max raised its prices recently as well.
It’s worth noting that Mathias Döpfner, CEO of Business Insider’s parent company Axel Springer, is a member of Netflix’s board.