Netflix is once again using Canada as ground zero for the streaming service's latest change: pulling the basic tier.
The basic tier, which costs $10 a month, is the cheapest plan Netflix subscribers can opt into if they want to watch their favorite TV shows without ads. Now the platform is taking away that option, leaving Canadian subscribers struggling to choose between the standard tier with ads ($7 a month), the ad-free standard tier ($15.50 a month), or the premium tier ($20 a month). Netflix launched the ad-supported standard tier in November 2022.
According to The Winnipeg Free Press, subscribers on the basic tier will stay on it unless they switch to another subscription plan or close their Netflix account. If they switch to another plan, they cannot switch back to the basic tier in the future, whereas new subscribers can no longer choose the basic tier.
The change in subscription options comes a month after Netflix began cracking down on password sharing, preventing users from sharing their passwords with friends and family outside of their households. If they want to continue sharing their account with other people, they'll have to pay $8 a month per extra user.
In conjunction with removing the basic subscription tier, Netflix's new password-sharing policy has caused a spike in new subscribers and a push towards ad-supported subscription plans worldwide (at least for those who can't afford ad-free ones), which proved fiscally beneficial for the company. In April, Netflix reported that subscriptions to the ad-supported standard tier brought in more money per user than the ad-free version in Q1 2023.
It's unknown whether Netflix will remove the basic subscription plan in the U.S. However, the company doing so in Canada will be a test for the rest of the world.
Cristina Alexander is a freelance writer for IGN. To paraphrase Calvin Harris, she wears her love for Sonic the Hedgehog on her sleeve like a big deal. Follow her on Twitter @SonicPrincess15.
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