Netflix announced it will no longer offer the basic plan, its cheapest ad-free subscription tier, for U.S. and French users. The plan had already been phased out in Canada and the U.K.

Netflix announced it will no longer offer the basic plan, its cheapest ad-free subscription tier, for U.S. and French users. The plan had already been phased out in Canada and the U.K. / Getty Images

Netflix is removing its cheapest ad-free plan for subscribers in the U.S. and France.

The change was announced Thursday as part of the streaming giant's second-quarter earnings report.

The basic plan was $11.99 per month, and had already been phased out for subscribers in Canada and the U.K. The company stopped allowing new sign-ups for the basic plan in July 2023, but existing subscribers were allowed to keep the plan until now.

Basic plan subscribers can switch to the ad-free Standard plan, which is $15.49 per month, or downgrade to the ad-supported plan that is $6.99 per month, which was launched in November 2022. There is also a premium plan for $22.99 per month.

The basic plan was the only tier that didn’t allow multiple users to stream simultaneously.

When asked about the results of phasing out the basic plan in Canada and the U.K., Greg Peters, co-CEO of Netflix, said that the Standard with ads plan has seen success since its launch.

“Essentially, we're providing them a better experience, two streams versus one. We've got higher definition. We got downloads. And, of course, all at a lower price, $6.99 in the United States. We think that represents a tremendous entertainment value. And it includes ads,” Peters said. “And for members who don't want that ads experience, they, of course, can choose our ads-free standard or premium plans as well.”

Netflix reported a record 277.65 million subscribers globally across all of its tier options in the earnings report. After a crackdown on password sharing, the company has seen a surge in new subscribers.

Tags: Netflix