Netflix Tests Removal of Basic Tier Subscription, Starts with Canada

Netflix Tests Removal of Basic Tier Subscription, Starts with Canada

News by Roberto OrosaRoberto Orosa
Published: June 28, 2023

Netflix appears to be testing the removal of its basic tier subscriptions, and it’s once again starting with Canada.  

The basic tier is the company’s cheapest subscription option for customers that want to stream Netflix without ads, costing only $10 a month. 

By removing it, Canadian users will be left to choose between the ad-powered option for $7 a month, the ad-free standard tier for $15.50 a month, or the premium tier with 4K HD video for $20 a month. 

According to a report by The Winnipeg Free Press, users currently subscribed to Netflix’s basic tier in Canada will continue to be subscribed to it until their plan expires, they decide to move to another tier, or they close down their account. As for new users, the basic tier will be removed as an option completely.  

This is not the first time the streaming service has seemed to use Canada as a testing ground for its policy changes.  

Last February, Netflix rolled out its password-sharing crackdown in Canada to generate revenue from users “getting a free ride” before it began doing the same with other countries.  

With the new move, it seems the streaming giant is limiting options for its users, as it experiences success with its other tier subscriptions.  

Market research conducted by Antenna last March also revealed that more users have been subscribing to Netflix’s basic with ads tier, spiking from 9% to 19% in January.  

Its password-sharing crackdown has also been deemed successful. During the first six days after the policy took effect in the U.S., the streaming giant experienced “the four single largest days of U.S. user acquisition” in four and a half years, as per Antenna.

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