Netflix drops $12/month plan

Netflix is ending its cheapest ad-free plan, prompting existing subscribers to choose between a new, cheaper ad-supported option or a pricier ad-free plan.

The streaming giant is removing the $11.99 basic ad-free plan in the U.S. and France, after previously doing so in the U.K. and Canada. This leaves subscribers with the following choices:

• Basic with ads: $7/month
• Standard (no ads): $16/month
• Premium (no ads): $23/month

The move is expected to drive more subscribers to the ad-supported plan, which has already seen a significant increase in popularity. Netflix aims to enhance the value of this tier by offering improved features such as higher definition video, multiple streams, and downloads.

This change marks another step in Netflix's evolving subscription model, as it seeks to balance revenue growth with subscriber retention in an increasingly competitive streaming landscape. While the removal of the basic ad-free plan might displease some users, it could also open up opportunities for cost-conscious viewers and boost ad revenue for the company.

Some industry experts have raised concerns about the implications of this shift for consumer choice and data privacy. As more users opt for ad-supported plans, Netflix's reliance on targeted advertising could increase, potentially leading to more intrusive data collection practices. Additionally, the disappearance of the budget-friendly ad-free option might exclude some viewers from enjoying Netflix without commercials.

Despite potential drawbacks, Netflix remains optimistic about the future of its ad-supported tier, citing its strong performance and positive subscriber feedback. The company will closely monitor user reactions and adjust its strategy accordingly to ensure continued growth and success.

My Streaming Life rotates paid services. I don't use Netflix all the time, but it is in rotation. The $7/month plan is my choice. This change in plans isn't really impacting me, but if it impacts you, that's not a good thing.