Focused on ads, Netflix is ​​killing ad-free basic plan

Netflix's basic plan will be retired in more regions globally at the beginning of 2024. The change, which aims to boost the offering with advertisements for the streaming service, was announced at a meeting with the company's investors last Tuesday (23).

With the change, the cheapest plan without advertising costs US$15.49 (R$76, in direct conversion). The cheapest basic alternative, the standard plan with ads, costs US$6.99 (R$34.40).

Netflix will end the basic plan in more countries in 2024.Netflix will end the basic plan in more countries in 2024.Source: GettyImages

According to the company, About 40% of subscribers use the basic ad-supported plan in countries where it is available. The company's CEO, Greg Peters, claims that there are 23 million active monthly users with the package.

The end of Netflix's basic plan will affect Canada and the United Kingdom sometime in the second quarter of 2024. The company did not provide an exact end date for the package.

Basic plan does not exist in Brazil

The renewal of Netflix's strategy has already happened in Brazil: in October 2023, the basic plan was removed from the platform. The package cost R$25.90, but ended up falling into disuse due to its 720p quality and limitations on the number of screens.

Here, the cheapest alternative is the standard plan with ads. The subscription costs R$18.90 per month and guarantees access to two simultaneous screens in Full HD, but with advertising displayed during streaming.

Netflix numbers

In the last quarter of 2023, Netflix claims to have added 13.1 million subscribers. With the addition, the platform now has 247 million payers worldwide.

Netflix currently has more than 247 million subscribers.Netflix currently has more than 247 million subscribers.Source: GettyImages

The platform is expanding, but not all benefits will be offered for free forever. In the document, executives mention that improvements may cost “a little extra” over time.

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