Netflix is planning to remove its Basic plan, which offers standard definition streaming on one device, starting with Canada and the UK in the second quarter of 2024.
The move was announced in an earnings report for investors, where Netflix revealed that it is going to phase out the Basic plan for new and rejoining members in countries where ad-supported plans are available. Ad-supported plans, which were launched in late 2022, allow users to watch Netflix content with occasional ads at a lower price than the regular plans.
According to Netflix, the ad-supported plans have been a huge success, as they increased by nearly 70% quarter over quarter in the Q4 2023. Ad-supported plans also account for 40% of all Netflix sign-ups in areas where they are supported.
The company also shared some impressive numbers in its earnings report, as it added 13.1 million subscribers in the fourth quarter of 2023, bringing its total number to 260 million globally. They also ended the year with 12% revenue growth, up from 6% in 2022.
Netflix raised the prices of its Basic and Premium plans in the US last year, citing the need to invest more in original content and technology.
As for the Philippines, Netflix dropped the monthly fees of its Basic and Standard plans in February 2023. Subscription starts at P149 per month for the Mobile plan.
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