- Netflix is phasing out is basic subscription plan in Canada, according to reports.
- The basic tier was previously available for $9.99 (CAD) per month, but is set to fall away.
- Subscribers currently on the basic tier will still have access to it, but should they switch, will not be able to return to it.
Netflix has begun the process of phasing out its basic subscription plan in Canada, with the Winnipeg Free Press (WFP) noting that the change has already begun in the North American country.
As Engadget points out, this follows a decision by Netflix to charge Canadian users who wished to share account details within their households.
“Netflix has already removed the basic tier for new subscribers and a company representative said it will also be removed as an option for current members ‘in the near future’,” the WFP wrote.
The basic subscription will still exist for current users, but will not be made available as an option for those wanting to sign up for or create a new Netflix account. The reports add that should an existing basic subscription user switch to a different account, they will not be given the capability of switching back to the old basic account.
At the time of writing, the basic subscription, which is now being phased out, is $9.99 (CAD) per month, while the basic with ads subscription is $5.99, and the standard is $16.49, along with the premium subscription costing $20.99.
It therefore looks like Netflix is wanting to get more subscribers on its ad-supported tier, which may be less expensive, but could prove more profitable for the streaming platform provided advertisers are keen on leveraging it.
Whether Netflix plans to make similar changes in other regions remains to be seen, but for South Africans, only four subscription options exist currently:
- “Mobile: 49 ZAR/month
- Basic: 99 ZAR/month
- Standard: 159 ZAR/month
- Premium: 199 ZAR/month.”
With the ad-supported tier yet to roll out locally, it may be a case of the new subscription option needing to be in place first before Netflix chooses to phase out the basic one. Either way, the streaming platform is looking for more ways to be profitable as investor patience wanes.
