Netflix announces withdrawal of its cheapest ad-free plans in some countries

In a move that points to a restructuring of its service plans, Netflix has decided to end its subscriptions no ads Basic price in some countries, start of this new strategy Canada And this United Kingdom During the second quarter of the year, as reported by the company in a letter recently shared to shareholders.

CBS News Indicated that affected users will now have to opt for the more expensive ad-free plan, which starts at US$15.49, or accept ad interruption in the basic plan with ads for US$6.99 per month.

This decision does not yet include changes for customers in the United States Netflix It did not specify whether it would make similar adjustments. This amendment is part of a broader strategy Netflix Promote advertising plans as an important source of revenue, with a view to “contributing to sustainable and healthy revenue growth through 2025 and beyond”, according to the letter to shareholders.

officers of Netflix They also noted that as they continue to invest and improve the platform, they will occasionally ask their members to pay a little more. “In this way we encourage a positive flow of additional investment to continue improving and growing our service,” he explained in the letter.

In terms of content, the company recently signed a 10-year deal worth $5 billion to broadcast wrestling shows. Monday night Raw of WWEA famous show that previously aired on television for more than three decades.

With this deal, the streaming giant has made significant progress in live sports broadcasting, areas in which it had already shown interest from past and future events, including golf and tennis.

Co-CEO of Netflix, greg petersIn a video interview for investors, it was highlighted that the ad offering reached 23 million monthly active users, highlighting that the priority for this segment is “scale”. They also revealed that they are working to make the plan more attractive with improvements like increasing resolution up to 1080p, multiple streams, and the ability to download content.

Netflix It added 13.1 million subscribers in the last quarter of 2023, taking its global total to 247 million. This growth reflects the streaming platform’s continued expansion and adaptation in a competitive market, where improvements such as 4K transmission and entry into online games represent added value to its services.

the verge noted that the impact of these new policies on customer satisfaction and loyalty remains to be seen, but is clear Netflix continues to evolve its business model, looking for a balance between offering quality content and efficiently managing its income structure.