Users in UK and Canada shown warning on Netflix
(Credit: Netflix)

Netflix News

Users in UK and Canada shown warning on Netflix

Over the past couple of years, Netflix has initiated a clampdown on streamers to increase revenue. Last year, the streaming giant imposed restrictions on multiple household account sharing, ensuring their due payment by offering a more expensive subscription if users wish to use the same account across multiple households. 

To alleviate the financial burden on low-income households, Netflix has discussed introducing a low-priced subscription plan with adverts. The streamer’s cheapest plan has traditionally been proudly ad-free, but as Netflix looks to finally introduce adverts, they warn Basic plan users to upgrade to a higher-cost option or embrace adverts. 

Customers currently using the platform in Canada and the UK have reported seeing a doomsday message on the TV app over the past week. “Your Basic plan has been discontinued, but you can easily switch to a new one. Plans start at just $5.99 with upgraded features,” the message reads in Canada. 

The new Standardd plan with ads will cost $5.99 per month in Canada, while the next cheapest option without ads will cost $16.49. This replaces the Basic plan, which was $9.99 per month. 

Some streamers have responded to the news by announcing that they would save 100 per cent on their new plan by cancelling the overpriced platform. These scores of lost streamers will instead embrace the plethora of alternatives available today, including Disney+, Amazon Prime Video, Apple TV+, and Paramount+.

This sobering news for Basic plan customers has been in the post for some time. Last year, Netflix announced that the Basic plan would no longer be available to new customers as it made moves to introduce changes to the pricing structure. 

Greg Peters, the co-CEO of Netflix, discussed the price restructuring plans as a necessity for ongoing investment in a statement to Verge in June. “They want a higher diversity of shows, they want more quality shows, so that’s our job,” he said. “If we do that well, we’ll go back and occasionally ask members to pay a little bit more to keep that flywheel running.”