Netflix has just begun deleted its cheapest ad-free subscription tier in the recent past within the UK and Canada. A notice is sent out to Netflix apps for the last day that the plan can be used unless they switch to another option. The end will therefore affect hundreds of millions of subscribers using Netflix with its Basic ad-free plan.

The company is axing its Basic plan, available in the UK for £7.99 per month and for $11.99 in the United States; prices differ in other countries. Instead, Netflix will funnel customers toward two other options: a new Standard plan with ads that will be cheaper or more expensive Standard and Premium plans with higher streaming quality and additional features like simultaneous viewing on more than one device and downloading.

For example, its basic plan customers in the UK are now being told either to upgrade to the new £4.99 Standard plan that includes ads or pay £10.99 for the Standard plan without ads. Furthermore, the £4.99 plan maintains video quality at 1080p while popping in ads; however, in Canada, where the price of its Basic plan is going up from $9.99 to $16.49 for the Standard plan, subscribers can also downgrade to an ad-inclusive $5.99 plan to retain some savings.

Netflix had stopped offering the Basic plan to new subscribers last year, and it will now be phased out entirely in some regions where ad-supported plans become attractive enough. As a matter of fact, on its early 2024 earnings call, Netflix enunciated plans to end the Basic plan in Canada and the UK first before possibly extending this change to other regions. The decision comes as Netflix’s ad-supported tier notches 40 million monthly active users globally, up significantly from last year.

This move by Netflix has received mixed reactions. Some appreciate the option this gives subscribers to pay less with ads, while others—who prefer an ad-less viewing experience—are willing to pay more. A lot of users are taking it to platforms like Reddit to discuss these changes, sharing their thoughts and concerns over how it’s going to impact their viewing habits and budgets.

In essence, Netflix is terminating its cheapest ad-free subscription plan as part of broader efforts to kindle a shift in changing consumer behavior and market dynamics. Although this step will create some inconvenience for users in the beginning, the company simultaneously opens newer options for different needs and budgets of various viewers. These adjustments have to keep the streaming service sustainable and competitive with respect to the global audience in this sequential process.