Netflix Inc. NFLX has decided to discontinue its most affordable ad-free subscription plan in the United States and France beginning Thursday.
What Happened: In a letter to shareholders, the streaming behemoth said that it would phase out the basic ad-free plan, which was priced at $11.99 per month.
Netflix ceased offering the basic plan to new subscribers last year in July but permitted existing customers to retain their subscriptions provided they didn’t cancel or alter plans.
See Also: Discover Xbox’s Deadpool-Inspired ‘Cheeky Controller’ And How To Get It
The basic plan is no longer available as an option for U.S. subscribers on its Plan and Pricing page. Netflix’s other plans include a $6.99 monthly option with ads, a $15.49 monthly standard HD video quality plan (no ads), and a $22.99 premium Ultra HD plan (no ads).
Netflix subscribers in the U.S. and France currently on the Basic plan will have to select a new plan, the company announced. Impacted members will start receiving email notifications.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: Netflix’s decision to discontinue its lowest-priced ad-free plan comes on the heels of its second-quarter earnings report. The streaming giant reported second-quarter revenue of $9.56 billion, marking a 16.8% year-over-year increase.
The revenue total surpassed a Street consensus estimate of $9.53 billion, according to data from Benzinga Pro.
Netflix concluded the second quarter with a total of 277.65 million paid subscribers, marking an addition of 8.05 million during the period. The company also reported a 34% quarter-over-quarter increase in its ad-supported membership during the second quarter.
NFLX Price Action: Netflix shares ended Thursday's session down 0.68% at $643.04. In the after-hours session, the company’s shares dropped a little more, and at the time of writing, they were at $641.89.
Image via Shutterstock
Check out more of Benzinga's Consumer Tech coverage by following this link.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
