Netflix Canada has announced that it will phase out the $9.99 “basic” option from its price plans, eliminating the cheapest ad-free subscription option.
What Happened: The streaming giant’s decision means that new subscribers will have to choose between viewing with commercial breaks or paying more for an ad-free experience, CTV News reported on Saturday.
Netflix’s ad tier costs C$5.99 and allows viewing on up to two screens at once with commercial interruptions. The ad-free options start at C$16.49 per month for simultaneous viewing on two devices.
Why It Matters: This change comes months after Netflix NFLX used the Canadian market to test its password-sharing crackdown, which triggered unprecedented subscriber growth in the U.S.
The basic tier has already been removed for new subscribers, and a company representative stated it will also be removed as an option for current members “in the near future.” Subscribers currently on the basic service will be grandfathered into the plan unless they switch to another option or cancel their account.
As streaming services continue to evolve, companies like Netflix and Amazon Prime Video are constantly adjusting their strategies to maintain and grow their subscriber base.
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