As streaming service Netflix shared its fourth quarter financial results for 2023, they wrote a letter to shareholders expanding upon their plans moving forward. The letter mentioned raising the prices of plans going forward. The increase in price will go towards investment into more content on the platform.
The letter detailed 'As we invest in and improve Netflix, we'll occasionally ask our members to pay a little extra to reflect those improvements...'
With the confirmation of plans being increased, Netflix is planning on removing the basic ad-free plan. This means that any users with the 'old' plan will have to upgrade to continue watching Netflix content. This change comes after Netflix stopped new subscribers to the basic-ad free plan in the US, UK, and Canada last year.
The ad-free basic plan will be dissolved, starting with the UK and Canada in Q2 of 2024. On top of this, Netflix confirmed users on the $11.99 Basic plan will have to also upgrade. The current ad-free options come at $15.49 for Standard and $22.99 for Premium.
Netflix was quick to state that Standard has benefits to which Basic does not have access. Overall, Netflix stated how they aim to provide a 'range of prices and plans to meet a wide range of needs'.
Netflix has been aiming to monetize more and more on their platform, and it's expected plans will cost more in the future.