Netflix Discontinues Budget-Friendly Ad-Free Plan for Select Users

Tech & AI | July 3, 2024, 12:24 a.m.

Starting July 13, Netflix is discontinuing its $11.99 ad-free plan, leaving customers to choose between a $6.99 plan with ads or a pricier ad-free option. The change is already affecting users in the UK and Canada, with expansion to other countries planned soon. Despite the higher subscription costs, Netflix saw a 16% increase in memberships in the first quarter, reaching 269.6 million. The company's move seems to favor more expensive plans, leading to user frustration and complaints on platforms like Reddit. Some users feel marginalized by the developments, as Netflix appears to be targeting customers towards premium options or ad-supported plans. This shift aligns with Netflix's previous announcement of focusing on more profitable revenue streams. While some speculate on the reasons behind Netflix's strategy, the company's growth remains strong, with memberships spiking and a focus on innovations like live programming and gaming. Despite discontent among users, Netflix's financial performance continues to be robust.