Netflix Inc NFLX said Monday it would no longer offer free trials in the United States.
What Happened: The subscription video on demand company says on its website that “free trials are not available” and urges viewers to subscribe to a “no commitments” plan.
The video streamer started phasing out the free trials this month and is introducing other ways including posting educational content on Alphabet Inc's GOOGL GOOG YouTube to promote its offerings, The Verge reported.
Some content, like its film “To All the Boys I’ve Loved Before,” has reportedly been made available as samples accessible without a subscription.
Why It Matters: The cancelation of the free trial comes at a time when other SVOD services are using trials as a way to attract viewers, The Verge noted.
SVOD platform Quibi and Walt Disney Company’s DIS Disney+ both offered free trials but with varying success in terms of gaining viewership this summer.
Apple Inc AAPL meanwhile has extended the free trial of its Apple TV+ subscription service until February as it gears up to compete with rivals such as Netflix and Amazon.com Inc's AMZN Prime Video.
Price Action: Netflix shares closed 2.65% higher at $554.09 on Monday.
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