Netflix Phases Out Basic Subscription in Canada, UK

Netflix is discontinuing its most affordable ad-free plan, the Basic subscription priced at $11.99 monthly in the US. This retirement of the plan, which is no longer open to new or returning members, was disclosed during Netflix's earnings report.

Despite the criticism thrown to Netflix about its ad-tier subscription plan, the streaming giant proves that critics are wrong. According to the latest report, the number of ad-based plan subscribers continues to grow.

Retiring Its Basic Plan

While ad-supported plans are available, Netflix executives announced that the Basic plan would be retired first in Canada and the UK during the second quarter of this year.

Consequently, The Verge reported that the $15.49 per month option becomes the new entry-level ad-free plan, representing a notable increase from the previous $11.99 cost.

With this change, subscribers now face the options of a $6.99 per month ad-supported basic plan or a $22.99 per month Premium tier. The discontinuation of the Basic plan began in Canada last year before extending to the US and UK.

During a video interview targeted at investors, co-CEO Greg Peters disclosed that the ad-supported feature has reached 23 million monthly active users, emphasizing Netflix's commitment to achieving greater scale for this offering.

Peters highlighted efforts to enhance its appeal, such as the upgrades implemented last year on the basic version, which increased the resolution to 1080p, introduced multiple streams, and enabled downloads.

Additionally, Peters discussed Netflix's ongoing adjustments to its plans and pricing structure in various regions.

Occasional Adjustments

In a notable announcement, Netflix reported a substantial growth of 13.1 million subscribers in the final quarter of 2023, elevating its global subscriber count to 247 million.

While Netflix has introduced numerous enhancements to its service, including 4K streams and ventures into gaming, the expectation of perpetual free access to these upgrades is unlikely.

The executives at Netflix noted that as they continue to invest in and enhance the platform, there might be occasional adjustments to subscription fees to reflect these improvements.

It's worth mentioning that Netflix implemented price increases for its Basic and Premium plans in the previous year.

In a surprising move earlier today, Netflix announced a groundbreaking 10-year deal to broadcast WWE's Monday Night Raw. The $5 billion agreement marks a shift for the live weekly show, which has been on linear television for over three decades.

Under the terms of the deal, Netflix secures the rights to Monday Night Raw for the next decade, with an option to terminate the contract after five years.

Notably, NBCUniversal's Peacock currently hosts a WWE content library, but it does not stream Monday Night Raw live. Additionally, Peacock retains the rights to premium WWE events such as the Royal Rumble and Wrestlemania.

Netflix has been progressively expanding its involvement in live sports, diverging from its initial stance of focusing on "sports-adjacent" streaming. In November, the streaming giant ventured into live sports broadcasting with a golf competition featuring PGA pros and F1 racers.

Subsequently, Netflix revealed its intentions to broadcast a live tennis match in March, showcasing veteran player Rafael Nadal against Carlos Alcaraz. The recently announced WWE deal signifies Netflix's most significant venture into the realm of sports content to date.