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Netflix has removed its cheapest monthly plan for subscribers to watch advert-free in the US and UK, it has been revealed.
The move, which only affects new customers, emerged shortly before the latest Netflix financial results which showed steady revenue and earnings growth but projected a fall in content spending, partly due to the impact of industry strikes.
A total of 5.9 million new customer additions, likely caused by its well-publicised crackdown on password sharing, smashed Wall Street expectations of 1.9 million for the three months to the end of June.
It emerged earlier in the day that its basic £7-a-month ad-free plan would no longer be available to new subscribers.
It is part of the streaming video platform’s efforts to draw more customers towards its ad-supported and higher-priced tiers under plans to grow revenue in an increasingly crowded market, particularly in the US.
The company launched a cheaper tier with advertising late last year, later moving to build its subscriber base through the curbs on sharing passwords.
It insisted that users who were already on the basic ad-free plan could remain, until such time as they changed plans or cancelled their account.
The decision leaves Netflix with three main price plans at a time when household budgets are strained by the effects of inflation on both sides of the Atlantic.
The second quarter results statement forecast third quarter revenue would hit $8.5bn – just shy of analysts’ forecasts.
The March-June number was $8.2bn – a rise of just under 3%.
Market experts suggested that Netflix, unlike many of its US competitors, would be less likely to be…
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