Netflix continues to tinker with its subscription plans, yanking its basic $9.99 ad-free offering. That leaves its new $6.99 advertising plan, its $15.49 ad-free plan and its $19.99 premium plan, according to the streamer’s sign-in page.
The move could nudge users to the cheaper ad-supported plan and doesn’t compromise the business since the vast majority of Netflix subscribers already take the $15.99 plan.
The shift comes as the company prepares to release second-quarter earnings after market close today.
Netflix launched the ad-supported tier last November. Disney+ did the same the following month as streaming services looked to boost revenue in a crowded market. Subscriber growth slowed post-Covid even as spending on content had exploded. Wall Street’s shift to focus on profits over subs pushed media companies to pivot. Netflix — whose business, unlike other streamers, is profitable — had always been averse to advertising, until it wasn’t.
More to come…
