Explained: How Netflix’s new plan change will affect subscribers in the US and the UK

Netflix, one of the world's leading streaming platforms, has recently made certain significant changes to their subscription plans in the United States and the United Kingdom. In a surprising move, Netflix has decided to remove its basic ad-free plan in the two countries to push for more subscribers and higher revenue starting July 2023.

The official website for Netflix US and UK no longer showcases the basic commercial-free plan that cost $9.99 a month in the US and £6.99 per month in the UK on their Plans and Pricing page. Instead, the cheapest option available for subscription will be a $6.99 plan with no ad-free features. The news comes after the ad-free plan was scrapped in Canada last month.

Despite the changes in its basic plan structure, it has managed to garner 5.9 million subscribers in the past three months. Meanwhile, the crackdown on password-sharing continues at the headquarters with a new policy hanging around the corner leaving viewers with choices to make.

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Netflix removes its basic ad-free plan to increase revenues in 2023 Q2

Amidst the growing competition in the streaming industry, Netflix's decision to remove the Basic Plan without commercials and eventually introduce a password-sharing policy aims to streamline its offerings and increase its streaming profits overall.

The streaming platform's basic plan of $9.99 per month in the US is no longer visible under the subscription plans for new or rejoining subscribers and media outlets. This change was noticed on Wednesday, July 5, 2023. However, existing subscribers of the old plan will continue to enjoy its benefits for their subscription period unless they choose to cancel it themselves.

The cheapest subscription plan for US and UK viewers remains the $6.99 per month Standard with Ads plan that was introduced in November. The new basic plan includes two streaming screens, 1080p full HD viewing for most movies and shows, and unlimited mobile games. The same plan comes with an average of four minutes of ads that cannot be skipped by viewers.

Subscribers can otherwise choose to upgrade and either opt for the $15.49 per month Standard plan that includes unlimited ad-free 1080p full HD viewing on two supported devices or the $19.99 per month Premium plan that plays the ad-free content in 4K Ultra HD using Netflix spatial audio on four supported devices.

One can pay for an extra member under the Standard Plan for $7.99 a month or pay $15.99 per month for two extra members under Premium Plan. The cost for two extra members under the Premium plans is $7.99 per person per month.

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More on the password-sharing policy

The streaming juggernaut had also begun rolling out a new password-sharing policy that aimed to stop multiple people from using a single account for streaming.

In the past, account holders have often shared their passwords with friends and family to share the service or to split costs. Nevertheless, Netflix has announced the launch of paid sharing in over 100 countries for the Standard and Premium plans.

Viewers comprise 5 million users in the ad-supported tier of the subscription plans to convince the platform to push for the cheaper ad-supported service keeping in mind the possibility of a lack of new content amidst the tense atmosphere of the strikes.

Following a rough patch, Netflix has a user base of 230.75 million which places it above Disney+, Paramount+, Hulu, and Peacock.