Netflix ends the Basic plan in Canada, replacing it with their ad-supported option. Possible expansion to other regions soon

Netflix has recently made a significant change to its subscription offerings in Canada, discontinuing the Basic plan option for new and rejoining members (as can be seen in their plan listing on the help page). The $9.99 tier, which provided ad-free streaming, has been removed, forcing Canadian users to choose between accepting ads or paying an additional $6.50 per month. This quiet implementation affects Canadian Netflix users exclusively at the moment, leaving other markets uncertain about potential changes, but if we look back (not too much really), the Canadian market has recently been a testing ground for the company in implementing and analyzing feedback on their new plans and policies, with the potential for international expansion, as seen with their password-sharing policy.

Former Basic subscribers in Canada must now either downgrade to the $5.99 ad-based tier or upgrade to the $16.49 Standard tier, which offers enhanced video quality and simultaneous streaming on two devices. This decision marks a departure from Netflix's long-standing commitment to an ad-free streaming experience. The company's motive behind eliminating the Basic plan is to increase revenue and regain support from stockholders, as evidenced by the introduction of the ad-supported tier in late 2022. As we mentioned before, Canada was among the first markets to experience Netflix's password-sharing restrictions, and while the initial response to the ad-supported option was lukewarm, recent internal data from Netflix indicates a rising popularity for the Ads tier. During the 2023 Upfront presentation, Netflix revealed that the ad-supported option attracted nearly 5 million global monthly active users, with a quarter of new signups worldwide opting for this tier.

The Netflix's strategic shift to an ad-supported model reflects a changing landscape in the streaming industry, with data analytics firms reporting a shift in new signups across various networks towards ad-based tiers. This can be seen as well in other popular services such as Hulu, Disney+, or HBO Max, which also offer similar pricing plans. If for any reason you want to explore other options besides Netflix, you can always take a look at our recommended list of alternatives or visit the service's app page on AlternativeTo.