Last October, it was announced that it would be launched in 10 countries and regions around the worldLow-cost subscription plans supported by advertisingAfter that, Netflix's next step is apparently to start replacing its basic ad-free subscription plan with a lower-priced one.
according toTechCrunch website reportIt was pointed out that Netflix's basic subscription plan on its official Canadian website is no longer available to new users. Users can only choose to use a cheaper plan with advertisements, or a standard plan or premium plan that requires paying a higher fee.
In the technical support page, Netflix stated that users currently using the basic plan will basically not be affected, but if they cancel their subscription or change their subscription plan later, they will no longer be able to resume using the basic plan. At that time, they can only choose a subscription plan with ads or subscribe to other plans at a higher fee.
It's unclear whether Netflix is using Canada as a test to gauge user response and decide whether to expand the practice to more markets, potentially encouraging users to opt for lower-priced plans with ads or pay more for premium options.
This move is clearly related to Netflix's current struggle to balance expenses and revenue. Previously, as Netflix's user base grew, it began to examine whether its service structure needed adjustments. This was particularly true with the increasing number of people sharing accounts, coupled with the rising costs of paying studios and producing original content, making it imperative to adjust its billing structure to balance revenue and expenses.
Therefore, in addition to adjusting the sharing method among family members to reduce the situation where non-family members share the same account, Netflix has also attracted more people to use the service through low-priced plans with advertisements. This time, it is trying to close the application for the basic plan, thereby directing users to more expensive plans or low-priced plans with advertisements.
