Trends

Netflix begins to cancel its cheapest ad-free package

AuthorZora Lin

Reading Time2 min

PublishedJuly 3, 2024

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Headline

Context

OUR TAKE Netflix is not alone in making such changes. Amazon Prime Video is charging a new fee of $2.99 per month for ad-free viewing, or it will integrate ads into its content. In addition, major players such as Disney , Warner Bros Discovery’s Max and YouTube TV Premium have also raised prices. –Zora Lin, BTW reporter Social media users in Canada and the U.K. have been Posting messages saying they’ve been notified by Netflix that the company’s basic plan has been discontinued and they must choose between an ad-supported plan or a more expensive ad-free plan, the Verge reports on July 2.

Evidence

Pending intelligence enrichment.

Analysis

Netflix notes that “AD programs now account for 40% of all Netflix sign-ups in our AD markets, and we intend to eliminate basic programs in some AD countries, starting with Canada and the U.K. in the second quarter.” The company has not said when it will cancel the plan for existing users in the United States. Netflix says in April that subscription fees and booming advertising boosted its first-quarter operating income by 54% to $2.6 billion. The company also adds 9.3 million paying subscribers during the quarter, bringing its total global subscriber base to nearly 270 million. Also read: Showrunner, the Netflix of AI, launches its own creation platform Also read: Netflix users fall for fourth month in a row due to stream inflation

Key Points

Netflix scraps its cheaper ad-free packages in Canada and the UK and must choose between ad-supported or more expensive one.
Netflix’s subscription fees and advertising business boost its first-quarter operating income by 54% to $2.6 billion.