Netflix has announced that it is discontinuing its Basic tier in the UK and Canada, which was its lowest-priced ad-free plan. Users on this plan have been notified to either upgrade to a more expensive option or accept ads. The co-CEO of Netflix, Greg Peters, stated that these price hikes were necessary to cover the costs of a wider range of content.
In Canada, users have reported receiving messages informing them that their Basic plan has been canceled and urging them to switch to a new plan with upgraded features. Similarly, in the UK, users have made jokes about saving 100% on their new plan by choosing not to upgrade.
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 had previously stated that the company planned to retire the Basic option in favor of more revenue-generating alternatives.
The rise in prices for streaming services has become a trend across the industry, with ten of the top services raising prices at least once in the past year. This announcement comes after Max, a competitor, recently implemented a price hike of its own.
It is worth noting that Mathias Döpfner, CEO of Business Insider’s parent company Axel Springer, is a member of Netflix’s board.
