In a move that could significantly impact Australian viewers, streaming giant Netflix has announced plans to scrap one of its most popular subscription options.

Netflix revealed their financial results in the US, which included the shocking announcement that they would be scrapping their basic plan in Australia, along with some other countries.

This plan is currently the cheapest way to watch Netflix ad-free in Australia, which costs $10.99 a month.

Cutting the plan appears to be part of Netflix’s goal to increase its advertising revenue by pushing customers looking for value towards plans that come with ads. They have also been gradually phasing out their basic plan in the US, UK, Canada and Italy for both new and rejoining members.

Netflix announced their financial results in the US and the removal of its basic plan in Australia. Credit: Unsplash

This move has had a huge impact on the brand—their ad-supported memberships have grown by nearly 70 per cent, and now account for around 30 per cent of all new sign-ups in the 12 countries where Netflix is now offering ads in.

A spokesperson for Netflix Australia confirmed that this change would be making its way down under next Monday, 23 October.

'From 23 October, we’re updating our plans in Germany, Spain, Japan, Mexico, Australia and Brazil, so that new members, rejoiners, and existing members looking to switch plans, will have the choice of our Ads plan, as well as our ads-free Standard and Premium plans.'

The spokesperson added: 'Nothing will change for members currently on the Basic plan at this time', however, this doesn’t make the change any less of a blow to Australians who are currently relying on this plan to save money.

Netflix also announced that they would be increasing prices for their plans in the US, UK and France, which have already come into effect.

They did not comment on whether similar price rises would be coming to Australia in the near future, but due to the rising cost of living, changes such as this may be coming sooner rather than later.

However, in a past article, Netflix alluded to another price increase result of the loss in revenue the company is suffering due to the recent Hollywood strike. You can read more about this story here.

Netflix’s basic plan has been removed from Netflix Australia. Credit: Netflix Australia

Historically, Netflix has been ad-free, with customers paying a flat monthly fee to access unlimited content. The pricing plans depend on the quality of the streaming service and the number of devices that can be used to view content simultaneously.

By introducing ads into their streaming service, Netflix joins the likes of Hulu and Prime Video, who have long since offered ad-inclusive plans as a cheaper alternative. This has been a significant revenue stream that allows them to generate a considerable amount of ad revenue while also allowing them to offset some of the rising costs of content production and licensing.

In other news, Netflix recently reported a decrease in subscriber numbers for the first time since its launch in Australia in 2015. This may be due to their recent crackdown on password sharing, so make sure to check your internet security is up-to-date if you are guilty of sharing your password with friends and family.

Key Takeaways

• Netflix is planning to scrap its basic plan in several countries, including Australia, from next week.
• The basic plan, costing $10.99 a month, is currently the cheapest way to watch ad-free content on the streaming platform.
• The decision follows a similar move in the US, UK, Canada and Italy this year, aimed at growing advertising revenues by pushing customers onto plans that include ads.
• Netflix Australia has confirmed that nothing will change for members currently on the Basic plan at this time.

Members, will you be affected by this change? Do you watch any shows on Netflix? Let us know your thoughts in the comments below.

 

[Petra]

I love and enjoy my Netflix ...

 

[Suzanne rose]

I also love and enjoy Netflix. You have such a wide variety of movies and series .

As for pass word sharing when ever my son or daughter are away from home eg my daughter watches something at her boyfriend's then I get an email asking if this is a member of my household as it is being used in another location or device if not let us know .

Imnot paying to use it only at home

 

[Colette 3799]

I watch the odd show on Netflix but my husband watches constantly. I pay for the cheapest plan which only allows us to watch on one TV which works out fine. Not worth paying extra for the amount I watch

 

[CMH]

I watch a lot on Netflix, but if they are scrapping the basic plan; I'll be moving to another.

 

[steklarbones]

Let's be real, who doesn't appreciate a budget-friendly option, right? And while it's understandable from a business perspective, it does leave some folks in a bit of a pickle, especially those who rely on the basic plan for their entertainment fix. It's a shame because accessibility is key, especially in the realm of streaming where there's already a plethora of options to choose from. On a somewhat related note, it's wild how much the entertainment industry can impact someone's net worth, isn't it? I mean, just look at prince harry net worth. The Royal Family, Netflix, and even ventures like 'Spare' have all contributed to his financial status in one way or another.