Sun. Jul 14th, 2024

Disintegrating its ad-free Basic service threatens thousands

By knl9j Jul4,2024
News

The fact that Netflix has smashed its most popular package is not having a negative impact on the company’s finances: the exact opposite of that

Netflix appears to be more or less adamant on forcing us to view advertisements on the platform, or else we will be required to pay a significant amount of money to avoid doing so. We learnt that the old Basic plan will be discontinued in the United States of America, Canada, and the United Kingdom in July 2023, which is exactly one year ago. The deletion of the Basic plan is being carried out in a very slow and methodical manner. The news that this decision would be implemented in Germany, Japan, Australia, Brazil, Mexico, and Spain, which in practical terms worked as an increase for many users, became a pilot experience that could potentially be expanded over time to other markets. This ended up happening with the announcement that this decision would be implemented in these countries.

And after the announcement, the execution: a number of people on Reddit have expressed concern that they are being given ultimatums by the firm. Alter their plan (either to a significantly more expensive plan that does not include advertisements or to a lower one that does include advertisements) or else they will lose their subscription. Although the warning has primarily been sent via email, there have also been reports of notices being broadcast on television itself. These notices have included information regarding the day on which the plan will no longer be operational.

It is not something that should come as a surprise: Netflix had already revealed its plans, and in countries such as Spain, the platform’s plans website makes it quite plain that “The Basic plan is no longer available for new and returning subscribers.” This is something that is not surprising at all. Until you either switch to a different plan or cancel your account, you are free to continue using the Basic plan if you are currently subscribed to it.

For the time being, Netflix’s strategy is proving to be successful: the Standard plan, which includes advertisements, has already reached forty million monthly active customers throughout the globe. It is a surprising growth considering that it was not launched until the end of 2022, and the abolition of the Basic is unquestionably the factor that is responsible for its growth.

It would appear that Netflix is pushing on with its plan to gradually remove its basic tier, which is the least expensive and does not contain advertisements, for existing users in some regions. There have been numerous posts on social media platforms, including Reddit, indicating that Netflix is currently requesting that certain users of the basic plan choose a different plan in order to maintain their subscriptions.

A person on Reddit distributed, through The Verge, a notification that they had gotten on their Netflix app. The notification read, “The 13th of July is the last day you will be able to watch Netflix.” In order to continue watching, select a new plan. Those subscribers who are presently paying USD 11.99 per month (about Rs 1,000) for the basic plan will be required to choose between the ad-supported tier, which costs USD 6.99 (approximately Rs 580), the ad-free tier, which costs USD 15.49 (approximately Rs 1,300), or the ad-free 4K premium plan, which costs USD 22.99 (approximately Rs 2,000).

Reddit posts indicate that the majority of individuals who are receiving these notifications are located in either the United Kingdom or Canada. An earlier announcement made by Netflix stated that the basic tier would be discontinued in these territories during the second quarter of this year. This is consistent with that announcement. It is now stated on the price page of Netflix for both Canada and the United Kingdom that the “Basic plan has been discontinued.” Additionally, it is pointed out that “you can change your plan at any time.”

Netflix terminated its basic plan for new or returning users in the United States of America, Canada, and the United Kingdom in the previous year. On the other hand, the firm has not yet disclosed the date on which it would start the process of discontinuing the basic plan for its existing subscribers in the United States.

This move is a part of a larger strategy that Netflix is implementing to streamline its subscription offers and encourage more customers to subscribe to its premium and ad-supported tiers. In order to achieve its goals of increasing income and providing more value through its improved tiers, Netflix is in the process of discontinuing its basic plan.

It would appear that current Netflix users in Canada and the United Kingdom will be required to select a new plan by the 13th of July in order to continue enjoying Netflix’s content. In India, the streaming giant does not currently provide any packages that are financed by advertisements. There are a total of four different plans available to customers in India: mobile, basic, standard, and premium. In the basic plan, which costs Rs 199 per month and allows for streaming in 720p across mobile phones, tablets, desktops, and smart TVs, the maximum number of active screens that may be used at any given moment is one.

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