Netflix has removed the £7 a month Basic tier in the UK and US for new customers, which was its cheapest ad-free plan, as part of a major update to its pricing.
The streaming service appears to have quietly made the change in the UK and US on Tuesday, according to an archive of its web page, after introducing the new pricing model in Canada last month.
“The Basic plan is no longer available for new or rejoining members,” Netflix states on its website. “If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.”
As a result of the shake-up, new customers have three options instead of the usual four.
There’s the Standard with ads plan, which lets you watch in full HD on two devices at once for £5 a month. The other Standard tier is ad-free and also lets you download content on two devices and add an extra member to your account for £11 a month.
At the highest end, you can get Premium with 4K movies and shows, viewing on four devices simultaneously, downloads on six devices, and spatial audio for £16 a month. The Basic plan offers 720p resolution, which is lower than its ad plan at 1080p.
Netflix’s gradual expansion of the new pricing model mirrors the technique it used with its password-sharing crackdown. It implemented that policy in Canada in February and then introduced it in the UK in May.
The writing was on the wall when Netflix started hiding its cheap Basic plan in the UK back in January. Budding subscribers would have to read the small print to view the cheap option, signalling that Netflix was keen to get customers signing up to its advertising tier or higher-priced options.
That is hardly a surprise, as the Standard with Ads subscription nets the company both a monthly subscription fee and advertising revenue from brands. Netflix has already touted the plan’s success by claiming that it attracted five million users within six months of its launch.
