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Netflix Ends Ad-Free Basic Plan in US;  understand

Netflix Ends Ad-Free Basic Plan in US; understand

Streaming giant ‘kicks’ US subscribers who don’t upgrade to another plan

A Netflix Ending the free ad-free program to us, according to notifications received by US users. This information has been confirmed by a technical website on the edge This Tuesday, the 2nd.

Current subscribers to the bundle in the US have until July 13 to change their choice or lose access to Netflix altogether. The remaining options are the plan with ads (and 1080p resolution), US$6.99 per month; Standard plan (1080 pixel resolution and ad-free), US$15.49 per month; and Premium plan (4K resolution), US$22.99 per month.

In Brazil, subscribers have three plans: Standard with ads (R$ 20.90/month), Fixed (R$ 44.90) and Premium (R$ 59.90/month). The difference between the plans is the quality of the image and audio, the possibility of downloads and the number of users per account. There is no difference in the schedule of movies and TV series shown.

The return of the project was already expected by Netflix in January this year. In a report to investors, after presenting the company with positive financial statementsThe streaming giant’s basic plan, which accounts for about 40% of the company’s subscriptions with ads, is why it decided to end the basic plan without advertising in North America.

Netflix will no longer offer a basic ad-free plan in Brazil. But, unlike in the United States, Brazilian subscribers can still maintain a monthly subscription for the model, which costs R$30.90 per month, with a resolution of 720 pixels — the lowest of the models offered in the country.

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Worldwide, Netflix has more than 260 million subscribers, 46 million of whom are in Latin America and Mexico.

Focus on the program with ads

The focus on an ad-supported programming approach is new for Netflix.

Traditionally, the streaming giant has always boasted that it doesn’t offer subscriptions with ads. This position was publicly reinforced by Reid Hastings, the company’s founder and former CEO, who is now a consultant to the company.

Netflix’s mantra changed in 2022, While the company suffered a record quarterly drop in new subscriber numbers of 1.2 millionAggregation A gain of 8 million new subscribers this year, the worst result since 2011. During this period, growth was mainly affected by the post-pandemic situation, which took people out of the house (streaming was a natural option in the absence of cinemas and other leisure activities); And by raising global interest rates, forcing loss-making tech companies to become more efficient and profitable.

Netflix made a series of changes over the following months. It laid off hundreds of people around the worldcreated by “Extra Point Fee” (with an increase of R$12.90 for a user who does not live in the same household as the account holder) and began focusing on programs with advertisements, in violation of the streaming company’s “no advertising” policy.

This move, which proved successful, encouraged rival firms pressed by the search for profits to take similar steps. Amazon, Warner, Disney A few companies have developed solutions for their streaming services in the following months.

Netflix is ​​betting on ad-supported programming model to boost ad revenue and attract more users with lower subscriptions

Photo: Disclosure/Netflix / Estado