Netflix
Netflix

Netflix discontinues its ad-free plan in Canada and the UK in Q2

What To Know

  • In its earnings report for Q4 2023 released today, Netflix announced a significant change for its “Basic” plan in Canada and the UK, effective from Q2 2024.
  • However, Netflix is shifting its strategy to enhance its ad business, diverging from a reliance on continuous price increases—a trend observed across the streaming market.
  • Netflix stated, “We’re looking to retire our Basic plan in some of our ad-supported countries, starting with Canada and the UK in Q2 and taking it from there.
  • The Grand Theft Auto trilogy, introduced to the platform on December 14, is acknowledged as Netflix’s “most successful launch to date in terms of installs and engagement, with some consumers signing up simply to play these games.

In its earnings report for Q4 2023 released today, Netflix announced a significant change for its “Basic” plan in Canada and the UK, effective from Q2 2024.

The cheapest ad-free tier, which hasn’t been available for new sign-ups since July, will no longer be retained by current subscribers.

Initially priced at $10 or £7 per month, the ‘Basic’ plan increased to $12 or £8 in October. Essentially, subscribers will now have to choose between the pricier ad-free packages (starting from $16.49 or £11 per month) or the more budget-friendly ad-supported plan ($6 or £5 per month).

It remains to be seen which option the existing user base will favor when faced with this decision. However, Netflix is shifting its strategy to enhance its ad business, diverging from a reliance on continuous price increases—a trend observed across the streaming market.

According to the earnings report, the ads plan already constitutes 40 percent of all Netflix sign-ups in its ad-supported markets. It wouldn’t be surprising if a similar approach is adopted in the US soon.

Netflix stated, “We’re looking to retire our Basic plan in some of our ad-supported countries, starting with Canada and the UK in Q2 and taking it from there.”

The company is also experiencing success in gaming, with user engagement in this realm tripling in 2023.

The Grand Theft Auto trilogy, introduced to the platform on December 14, is acknowledged as Netflix’s “most successful launch to date in terms of installs and engagement, with some consumers signing up simply to play these games.”

However, Netflix notes that it’s still early compared to the scale of its core streaming business, and no significant figures are available to share. Perhaps there will be another leap in the gaming lineup in 2024.

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