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Netflix announced on Thursday that it is discontinuing its basic plan for subscribers in the United States and France.
The change will require basic-level customers to make changes to their membership to continue watching content on the streaming platform.
“The Basic plan has been discontinued,” the Netflix Help Center pages for US and France on plans and pricing said Thursday morning. “You can change your plan at any time.”
The change will require basic-level customers to make changes to their membership to continue watching content on the streaming platform. (Nikos Pekkiaridis/NurPhoto via Getty Images/Getty Images)
Netflix offers a basic plan in the United States for $11.99 per month and does not include advertising.
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The abolition of the basic plan in the United States and France Netflix second quarter earningsThis comes after the plan was removed from all viewers in the UK and Canada earlier this year.
Prior to this, Netflix had made the plan unavailable to new or returning members in the UK and Canada, and then later made it unavailable to new or returning members in the US. This happened last summer.
The Netflix logo will appear on your smartphone screen. (Photo illustration: Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
During the tier termination period, only users already on the Basic plan will be able to maintain that plan.
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Netflix suggested on Thursday that the decision to eliminate its basic plan in the UK and Canada had helped boost the number of its ad-supported subscriptions, as had its crackdown on password sharing.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | NETFLIX Inc. | 636.81 | -6.23 | -0.97% |
“The appeal of the ad-supported tier ($6.99 per month in the US, with two streams, high definition and downloads) and the phasing out of the basic plan in the UK and Canada (with the US and France due to follow) drove advertising membership growth of 34% quarter-over-quarter in the second quarter,” the company said.
In addition to the “Standard with Ads” plan, Netflix offers two other plans without ads: “Standard” for $15.99 per month and “Premium” for $22.99 per month.
Netflix offers a basic plan in the United States for $11.99 per month and does not include advertising. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)
The company reported that it had more than 277 million subscribers as of the second quarter, with more than 84 million of them in the United States and Canada.
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Netflix now expects full-year revenue to grow 14% to 15%, while its annual operating margin is now expected to be 26%, both up slightly from its previous outlook.
“Our goal is to increase our operating profit margins each year, but the rate of expansion will vary from year to year,” the company said.
