Netflix’s new policies are once again being tested by users in Canada, who are unknowingly thrust into the role of involuntary first adopters. After the controversial decision to implement higher charges for account sharing between households in the country, Netflix has now made the announcement that its basic plan will no longer be available for Canadian subscribers. The Winnipeg Free Press reports this recent development.
Fortunately, existing users on the basic plan need not worry about being forced off it. However, if they decide to switch to another plan or close their account, they will no longer have the option to return to the basic tier. As for new users, they will no longer be able to choose the basic option. Meanwhile, current subscribers on different plans will soon lose the ability to switch to the basic tier. In Canada, the basic plan is priced at $9.99 CAD per month, while the basic plan with ads costs $5.99, the standard plan is $16.49, and the premium plan is $20.99.
Interestingly, despite previously declaring that it would never introduce an ad-supported option, Netflix contradicted itself by launching the new tier in November 2022, not only in Canada but also in the US and ten other countries. Now, with the removal of the basic option, Netflix is nudging more customers towards a viewing experience filled with advertisements. The rationale behind this decision is quite simple: ad-supported plans can significantly boost Netflix’s financial performance. In fact, during the first quarter of 2023, Netflix witnessed its basic plan with ads generating more revenue per user than its standard plan, even though the former is priced at $6.99 compared to the latter’s $15.49.
There is currently no indication that the basic tier will be eliminated in the US anytime soon. However, if you wish to avoid higher costs or watching advertisements, now would be an opportune moment to select the basic plan. In the US, the basic plan costs $9.99, while the premium plan is priced at $19.99.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
