In the midst of a “double strike” caused largely by the lack of residuals for writers and performers on streaming shows, Netflix has axed its cheapest ad-free plan. The “Basic” plan, which cost $9.99/month, is gone; the least expensive ad-free option is now “Standard” for $15.49. However, this only applies to “new or rejoining members.” According to the fine print, “If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.”
The other plans — $6.99/month standard with ads and $19.99/month for premium without ads — remain the same.
The Verge reports, “The writing was on the wall for Netflix’s basic plan when it silently removed it in Canada. In the US and UK, Netflix also started hiding the basic plan when new users signed up to the platform, requiring them to click a “see all plans” button for it to appear as an option alongside its other plans. The basic plan also didn’t let you add an extra member to your account as part of its paid sharing policy.”
The news of the price hike comes on the same day of Netflix’s earnings report, which comes this afternoon. The streamer’s stock is up to a 17-month high, due mainly to “the financial impact of Netflix’s initiative to curb rampant sharing of account information,” according to Forbes. “Netflix will reap about $9 billion in new revenue by 2025 thanks to the password program.” Hopefully a good chunk of that money goes to the people who make the content.
(Via the Verge)