The basic ad-free version has been removed; see other plans

Netflix is discontinuing its cheapest ad-free subscription plan in the US, a move that could encourage more viewers to switch to a cheaper ad-supported plan.

The Los Gatos, California-based streaming giant said in a letter to shareholders on Thursday that it would discontinue its basic ad-free plan — which cost $11.99 per month — in the U.S. and France. The company previously discontinued the basic plan in the U.K. and Canada.

The Basic plan does not show up as an option for U.S. subscribers on the Plan and Pricing page for U.S. customers. The company stopped offering the Basic plan to new subscribers in July 2023, but allowed Basic plan customers to remain subscribed as long as they did not cancel or change their plan.

Other Netflix plans include an ad-supported option for $6.99 per month, a standard HD video quality plan for $15.49 per month (no ads), and a premium Ultra HD plan for $22.99 per month (no ads).

Netflix, which began offering a “Standard with Ads” tier in November 2022, said the “compelling” of the plan led to a 34% increase in ad-supported subscriptions compared with the previous quarter. The company reported a record 277.65 million subscribers across all tiers in the second quarter, up 16.5% year over year.

Netflix subscribers in the U.S. and France who are currently on a basic plan will need to opt for a new plan, the company said in a statement to USA TODAY. Affected members will receive an email starting today, the company said.

Even without the basic ad-free offering, Netflix represents a “very strong offering for our members,” considering the ad-supported option at $6.99 per month, co-CEO Greg Peters said during a video conference on the company’s second-quarter results on Thursday.

“Basically, we’re giving them a better experience: two streams versus one. We have higher resolution. We have downloads. And of course, all at a lower price,” he said. “And of course, members who don’t want to watch ads can choose our Standard or Premium ad-free plans.”

The company reported its third consecutive quarter of double-digit revenue growth, reaching $9.56 billion in revenue in the second quarter of 2024, an increase of 16.8% compared to the same quarter in 2023.

Netflix added more than 8 million subscribers in the second quarter, helped by the return of shows like “Bridgertons” and “Baby Reindeer” and the live streaming of “The Roast of Tom Brady,” as well as restrictions on password sharing.

What are Netflix’s plans?

Standard with ads ($6.99 per month): Watch in Full HD on 2 supported devices simultaneously and download on 2 supported devices simultaneously
Standard plan ($15.49 per month): Watch in Full HD and download videos on 2 supported devices simultaneously (option to add 1 additional member who does not live with you for $7.99 per month).
Premium Plan ($22.99 per month): Watch in Ultra HD (4K) on 4 supported devices simultaneously and download on 6 supported devices simultaneously; option to add up to 2 additional members who do not live with you for $7.99 per month).

Netflix gains 8 million new subscribers

Total subscriber numbers rose to more than 277.6 million, up 16.5%, the company said. Netflix is forecasting lower subscriber growth in the current quarter (July-September) than during the same period last year, when the streaming company added more than 8.7 million.

In April, the company announced it plans to stop reporting member numbers from 2025.

Netflix shares initially fell 2% in after-market trading.

Netflix will begin releasing monthly video game releases, including one based on “Emily in Paris,” later this month. A multiplayer game based on “Squid Game” will follow later this year.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

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