Netflix cancels cheapest plan as subscribers have to choose

Netflix is finalizing its plans to completely phase out its cheapest ad-free subscription tier for its existing subscribers, reports Giant Freakin Robot. The company is now asking its users to choose a new Netflix plan to continue watching content on the world's largest streamer.

The Choice To Add More Fees Or More Ads

Netflix users took their dissatisfaction with Netflix's action to Reddit, where they discussed the new development. Apparently, those subscribed to the Basic Netflix plan, which is currently priced at $11.99 per month, will soon have to choose to either switch to a new Basic plan priced at $6.99 or a Standard plan for $15.49. Seems like a no-brainer, considering that the new price of a Basic plan is now more than 40% cheaper, but the downside is that the new Basic plan is supported by ads.

Back To Not-So-Basics

Yes, you read that right: The new Netflix plan, the one we previously paid for to avoid pesky advertisements, now contains the ads. However, the equivalent service to the soon-abandoned Basic plan is now called Standard, and its price went up by almost 30%. Now, it's important to note that most of the users receiving notifications about the price hike are located in the U.K. and Canada. This actually reflects Netflix's previous announcement regarding the discontinuation of the old Basic plan we all came to love.

Forcing The Hands Of Subscribers

However, the company still hasn't revealed when it will phase out the Basic plan for the existing U.S. subscribers and implement the new Netflix plans and prices. The newly formed subscription plans are priced at $6.99 for the ad-supported Basic plan, $15.49 for the Standard, and a 4K Premium plan that is completely ad-free and costs $22.99. But—and there's always some "but" rearing its ugly head—things aren't really as they seem, as more and more companies engage in mandatory arbitrations.

Targeted Advertisements Are To Be Expected

Namely, Netflix is now increasing the price of its former Basic plan and renaming it into Standard. Simultaneously, the company is introducing a new, ad-supported Basic plan, which, while more affordable, also implies that the company will collect data about its viewers and serve up ads based on the data it collected, thus earning not only money from subscriptions but also from advertisers. So, you can either pay more money for a new Netflix plan or choose a more affordable one and suffer all the annoying ads that go with it.

Know What You're Paying For

Sure, users can always purchase a 4K Premium for the ultimate experience, but as a prominent Right to Repair activist explained, Netflix only streams 4K content to its closed-source application that comes installed in closed-source Smart TV sets. Otherwise, it's 720p for $22.99—the cheaper Standard plan will still deliver 1080p for $11.99, regardless of where and how you watch Netflix. So, while it's well within the company's rights to introduce new Netflix plans, it's important to note that the service delivered isn't always what the service users pay for.

Right to Repair and consumer-protection advocates aside, it's only a matter of time before the new Netflix plan reaches U.S. subscribers. There's no mention of the European Union anywhere, and EU subscribers are currently paying $5.40 for a Basic ad-free plan.