Users in Canada continue to bear the brunt of Netflix’s new policies, as the streaming giant has now announced the discontinuation of its basic plan for Canadian subscribers. This decision comes on the heels of Netflix’s February move to charge more for account sharing between households in the country. As reported by The Winnipeg Free Press, while existing subscribers on the basic plan will not be forced off, they will not be able to switch to another option or rejoin the basic tier if they choose to close their account. New users, on the other hand, will no longer have the choice to opt for the basic plan, effectively limiting their options.
The basic plan in Canada is currently priced at $9.99 CAD per month, while the basic plan with ads is available for $5.99 CAD. The standard plan sits at $16.49 CAD, and the premium plan comes in at $20.99 CAD.
Interestingly, Netflix had vehemently declared that it would never introduce an ad-supported option. However, in November 2022, the company went back on its word and launched a new tier with ads in Canada, the US, and ten other countries. Now, with the decision to phase out the basic plan, Netflix is further nudging its customers towards accepting an ad-filled viewing experience. The rationale behind this move is fairly straightforward – ad-supported plans tend to be more lucrative for Netflix’s financials. In the first quarter of 2023, Netflix observed that its basic plan with ads brought in more revenue per user than its standard plan, even though the former is priced at $6.99, compared to the latter’s $15.49.
At present, there is no indication that Netflix will discontinue the basic tier in the US anytime soon. However, for those who wish to avoid higher costs or watching ads, now might be an opportune time to choose the basic plan. In the US, the basic plan is priced at $9.99, and the premium plan is available for $19.99.
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Netflix’s decision to remove the basic plan has stirred mixed reactions among its Canadian subscribers. Some have expressed disappointment at the limited options and the push towards ad-supported content. They argue that the removal of the basic plan effectively forces them to either upgrade to a higher-priced plan or endure ads, neither of which they consider ideal.
On the other hand, some subscribers have embraced the ad-supported tier as a cost-saving measure. With the basic plan no longer available, those seeking a more affordable option may find solace in the basic plan with ads. Despite the presence of advertisements, this tier still provides access to a vast library of content at a lower monthly cost. For price-sensitive viewers, this compromise allows them to continue enjoying Netflix while keeping their expenses in check.
However, critics argue that this move by Netflix represents a shift away from its original promise of offering ad-free streaming. They believe that introducing ads has compromised the viewing experience and eroded the platform’s unique selling proposition. Moreover, they worry that as Netflix becomes more reliant on ad revenue, the frequency and intrusiveness of ads may increase over time, further degrading the user experience.
It remains to be seen how Netflix’s decision to eliminate the basic plan will impact its business in Canada. While the company may reap financial benefits from this move, it risks alienating a certain segment of its user base and potentially driving them towards alternative streaming services. As competition in the streaming industry intensifies, maintaining a balance between revenue generation and customer satisfaction will undoubtedly be a critical challenge for Netflix and other players in the market.
For now, Canadian subscribers must evaluate their options and make an informed decision based on their preferences and budget constraints. Whether they choose to embrace the ad-supported tier, upgrade to a higher-priced plan, or explore alternative streaming platforms, the content consumption landscape in Canada is continuing to evolve, with Netflix’s policies serving as a catalyst for change.
