Netflix drops cheaper plan to boost advertising

Netflix drops cheaper plan to boost advertising

Netflix you have removed your basic plan in USA and the United Kingdomin which users could watch series and movies without ads, while the company tries to attract more subscribers to its level with advertising.

The company announced on its website that the basic $9.99/month plan will no longer be available to new or returning users. Users already on the plan will be able to stay on it until they change plans or cancel their account.

The company, a pioneer of streaming video, had launched a $7 a month option with ads in November in 12 markets, including the United States, as an alternative to ad-free plans.

His goal was to attract more customers and add a new revenue stream as competition for online viewers intensifies.

In May, Netflix also cracked down on password-sharing households and forced users sharing an account outside of the same household to pay an additional fee, which in turn caused scores of users to sign up for its cheaper base of ad-supported plans.

Source: Reuters

Source: Gestion

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