Current:Home > StocksNetflix switches up pricing plans for 2023: Cheapest plan without ads now $15.49-InfoLens
Netflix switches up pricing plans for 2023: Cheapest plan without ads now $15.49
View Date:2024-12-23 11:56:16
Netflix will no longer offer new U.S. subscribers its cheapest ad-free plan.
Netflix’s website notes that its $9.99-per-month ad-free plan is “no longer available for new or rejoining members,” but current customers can remain on the plan so long as they don’t cancel or change plans. The change means the cheapest ad-free tier for new members is now $15.49 per month.
The company confirmed the change in a Wednesday letter to shareholders.
After phasing out the basic ads-free plan for new and rejoining members in Canada, "we’re now doing the same in the US and the UK," the report reads. "We believe our entry prices in these countries – $6.99 in the US, £4.99 in the UK and $5.99 in Canada – provide great value to consumers given the breadth and quality of our catalog."
What was included in Netflix's $9.99 basic tier?
The $9.99 basic tier allowed customers to watch content without ads on one device at a time.
Its demise comes shortly after Netflix launched its $6.99 ad-supported tier in November, which features an average of up to four to five minutes of ads per hour. The new pricing plan drew in nearly five million global monthly active users in just six months, with more than a quarter of new signups choosing the ad-supporter plan in countries where it's available, according to a May press release.
While Chief Financial Officer Spence Neumann said the ad-supported plan continues to bring in a higher average revenue per membership than Netflix's standard plan, a company statement said its current ad revenue "isn't material" because the membership base is still small.
"Building an ads business from scratch isn’t easy and we have lots of hard work ahead, but we’re confident that over time we can develop advertising into a multi-billion dollar incremental revenue stream," the statement reads.
Netflix has lowered the boom on passwordsharing. What you should do now.
Netflix subscriptions up:How's that Netflix password crackdown going? Fans are angry, but subscriptions are up
What Netflix plans are still offered?
Netflix plans still offered in the U.S. include:
- A standard plan with ads for $6.99 per month that includes “all but a few movies and TV shows” due to licensing restrictions. Subscribers cannot download shows or movies.
- A standard plan without ads for $15.49 per month that lets users watch and download on two devices at a time in full HD. Customers can add one extra member who doesn't live in their household.
- A premium plan without ads for $19.99 per month that lets users watch on four supported devices and download on six devices at a time in Ultra HD. Customers can add up to two extra members who don’t live in their household.
Netflix earnings
Also Wednesday, Netflix revealed that it added 5.9 million subscribers in the second quarter. Despite the boost, shares slipped during after-hours trading after the company revealed it missed revenue expectations.
CFO Neumann said most of the company's revenue growth this year comes from new paid memberships, largely driven by the company's crackdown on password sharing.
veryGood! (1314)
Related
- In bizarro world, Tennessee plays better defense, and Georgia's Kirby Smart comes unglued
- New York man who served 37 years in prison for killing 2 men released after conviction overturned
- Florida deputy’s legal team says he didn’t have an obligation to stop Parkland school shooter
- Community Health Network to pay government $345M to settle Medicare fraud charges
- Patricia Heaton criticizes media, 'extremists' she says 'fear-mongered' in 2024 election
- Party of Pakistan’s popular ex-premier Imran Khan says he’ll contest upcoming elections from prison
- Mega Millions winning numbers for Tuesday: Jackpot rises to $57 million
- Fact-checking 'Maestro': What's real, what's 'fudged' in Netflix's Leonard Bernstein film
- Britney Spears Reunites With Son Jayden Federline After His Move to Hawaii
- For One Environmentalist, Warning Black Women About Dangerous Beauty Products Allows Them to Own Their Health
Ranking
- Kevin Costner Shares His Honest Reaction to John Dutton's Controversial Fate on Yellowstone
- How UPS is using A.I. to fight against package thefts
- Fans are begging for Macaulay Culkin to play Kevin McCallister in a new 'Home Alone' movie
- 93-year-old vet missed Christmas cards. Now he's got more than 600, from strangers nationwide.
- Catholic bishops urged to boldly share church teachings — even unpopular ones
- Gwen Stefani and Blake Shelton are spending New Year's Eve separately. Here's why.
- Southwest will pay a $140 million fine for its meltdown during the 2022 holidays
- Former Alabama correctional officer is sentenced for assaulting restrained inmate and cover-up
Recommendation
-
Garth Brooks wants to move his sexual assault case to federal court. How that could help the singer.
-
Israel’s top diplomat wants to fast-track humanitarian aid to Gaza via maritime corridor from Cyprus
-
Christian group and family raise outcry over detention of another ‘house church’ elder in China
-
Ireland to launch a legal challenge against the UK government over Troubles amnesty bill
-
Investigation into Chinese hacking reveals ‘broad and significant’ spying effort, FBI says
-
Italian prosecutor acknowledges stalking threat against murdered woman may have been underestimated
-
Abuse in the machine: Study shows AI image-generators being trained on explicit photos of children
-
Orioles prospect Jackson Holliday is USA TODAY Sports' 2023 Minor League Player of the Year