Certain Netflix users in Canada are encountering an increase in subscription fees as the ad-free basic plan comes to an end.
Netflix is discontinuing its most affordable, ad-free “basic” plan in Canada. After declaring last year that new or returning subscribers won’t have access to the $9.99 plan, the streaming service is now completely phasing out this price tier for existing users who were grandfathered into the plan. Subscribers on the “basic” plan must now decide whether to switch to a $5.99 plan that includes commercials, covering most of Netflix’s content, or opt for ad-free plans starting at $16.49 per month at a higher cost.
In its quarterly financial report on Tuesday, Netflix informed investors that it plans to discontinue the basic plan initially in Canada and the United Kingdom, with the phase-out scheduled to occur between April and the end of June.
This strategic move aligns with Netflix’s efforts to encourage more subscribers to opt for its ad-supported plans, which come at a lower cost but generate more revenue for the company through advertising space sales.
Several major streaming platforms have recently adopted similar approaches. For instance, Amazon’s Prime Video is set to introduce commercials on its streaming service in Canada starting from February 5. Subscribers will have the option to “opt-out” by paying a higher fee to eliminate commercial breaks.