In a recent update to its pricing strategy, Netflix has made a significant change that may affect new subscribers in the US and UK.

The streaming giant has removed its basic ad-free subscription option from the sign-up page, leaving only a few plans available for new customers.

This basic plan, previously priced at $9.99 / £6.99 per month, served as an entry point between the lower-cost ad-supported tier at $6.99 / £4.99 and the higher standard ad-free plan priced at $15.49 / £10.99.

Current subscribers of the basic plan can continue their membership at this rate until they decide to switch or cancel their service.

Moving forward, new users will have only three choices: the ad-supported standard plan, the standard plan without ads, and the premium ad-free plan—all clearly listed on Netflix’s pricing page in both regions.

This change does not come as a surprise, as hints from Netflix indicated a preference for directing users toward the ad-supported options, suggesting a strategic shift away from the basic ad-free plan earlier in the year.

Earlier reports noted that this was not an isolated incident, as Netflix had already eliminated its cheapest ad-free plan in Canada, hinting at a broader trend to increase ad revenue across its services.

The strategy appears to be effective; according to Netflix's shareholder letter from April, the introduction of ad-supported options has led to a rise in subscriber numbers.

In Canada, for example, the company observed a growth in paid memberships exceeding pre-launch levels of paid sharing, with revenue growth outpacing the US market.In a surprising move, Netflix has eliminated its basic ad-free subscription tier for new users in the US and UK.

This change comes just before the company's upcoming earnings report, set to be revealed on July 19, 2023.

The reasoning behind this decision remains uncertain, and it is yet to be seen if a new plan will take its place.

Interestingly, as Netflix prepares to announce its latest subscriber figures, speculation suggests that the platform is witnessing a surge in sign-ups, likely influenced by its recent efforts to combat password sharing.

Overall, it appears that Netflix's strategies are yielding positive results.

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