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Why is the Netflix basic plan being removed in the UK and what is the alternative plan?

Why is the Netflix basic plan being removed in the UK and what is the alternative plan?

 


The large group of Netflix Basic users in the UK and Canada have received some bad news through their email inboxes over the past few weeks. Anyone who currently signs up for the basic tier will automatically be moved to the cheaper, ad-supported plan in just a few days.

The streaming service is investing heavily in its ad-based plans, a year after its basic tier was cut off for new subscribers. In addition to Netflix's crackdown on password sharing, this is another aggressive move by the world's largest streamer.

Let's take a closer look at the situation and find out how people reacted to the fact that watching the final season of Stranger Things without ads has become much more expensive.

When will Netflix Basic Tier be discontinued?

Bridgerton is one of the biggest draws for Netflix subscribers. (Netflix)

Netflix subscribers in the UK who are currently paying for the 7.99 basic plan will see that service shut down on June 4. On that date, subscribers will be moved to the “Standard with Ads” package. It's a cheaper service, only $4.99 per month, but it comes with ads.

If Netflix UK subscribers want to experience the Netflix catalog without ads, they will need to sign up for the Standard package. The deal is currently priced at 10.99, a significant increase over the basic plan.

Read more: Netflix wins the streaming wars, but can it prove its advertising business? (Downtown AM)

Why is Netflix removing basic ratings in the UK?

Netflix Basic users will need to change plans to watch the Stranger Things finale. (Netflix)

Read more: What streaming bundles are available in the UK? (Yahoo Entertainment)

This move makes a lot of financial sense for Netflix. Streamers will benefit greatly by putting more people on the ad-supported tier, with the change set to automatically move thousands of subscribers to this package. Many of these will remain in place, increasing their appeal to potential advertisers. Netflix can now give you more eyes.

For example, an April 2024 survey shared by Variety found that 27% of U.S. Netflix subscribers were in the ad-supported tier. This represents an audience of more than 20 million for advertisers who work with Netflix.

Netflix wants to move customers to an ad-supported tier. (Getty)

It's easy to see why this decision might seem like a win-win for them, since customers who are upset about having to watch ads will now have to pay $3 more per month than they did on the basic tier. The standard tier is more than double the price of the ad-supported plan.

Of course, there is always an element of risk for Netflix in these situations. Viewers who are sufficiently outraged by the pricing decision may delete their accounts entirely. And this shows how people reacted to this whole situation…

Read more: What to watch on Netflix in May 2024, from Bridgerton to Atlas (Yahoo Entertainment)

What have people said about Netflix removing default ratings?

On Wednesday, Jenna Ortega's series became one of Netflix's biggest hits. (Netflix)

It is no exaggeration to say that Netflix users in the UK and Canada, where the Basic plan will also disappear in June, reacted angrily to the news that the Basic plan would soon disappear. In fact, several users have already canceled their accounts or promised to do so when changes occur.

“Removing the basic plan from current subscribers and forcing them to pay for advertising or go to the 10.99 per month plan seems to me like that is one way to lose subscribers,” one angry subscriber wrote.

Another user said they had decided to cancel their plans and “will be back when WWE moves to Netflix,” which is scheduled for early 2025, while another described the decision as “honestly daylight robbery.”

One user went even further by saying, “My basic plan ends in June and so does my relationship with Netflix.”

@NetflixUK Remove the basic plan for current subscribers and force customers to either pay for ads or go to the 10.99/month plan… I guess that's one way to lose subscribers #Netflix

Berisha Show (@BerishaShow) May 5, 2024

It's frankly daylight robbery for Netflix to get rid of the basic plan and only offer a cheaper but ad-laden option or 10.99 per month.

Holly (@hollydotray) April 29, 2024

Read more: Netflix says it has reached 40 million users of its subscription plan with ads (Bloomberg)

It's clear that many current Netflix Basic users are very upset about the streamer's decision to abandon the cheaper plan. But it's yet to be seen whether enough people will cancel it for it to not be considered a success for Netflix.

For many people, Netflix has been the streaming service of choice for years. There aren't many streamers that can compete with the extensive Netflix catalog, and the presence of massive series like Stranger Things, Bridgerton, and Wednesday makes it difficult to consign the service to the dustbin.

The proof of the pudding will be in the numbers, but it seems unlikely that this move will be anything other than a financial win for Netflix. The big game of streaming wars begins.

Sources

1/ https://Google.com/

2/ https://uk.news.yahoo.com/netflix-basic-plan-uk-adverts-price-103217210.html

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