Netflix has announced upgrades to its basic ad-supported subscription plan, which was launched last year as a lower-cost option for those who wished to use the service without breaking the bank. Improvements include better streaming quality and simultaneous streams.
Netflix’s is enhancing its Basic with Ads plan by increasing the video quality from 720p to 1080p without any additional charges. The plan, which costs $6.99 per month, will now also permit up to two simultaneous streams per account.
Though first met with a significant amount of concern among subscribers, according to a letter sent to shareholders revealing the first-quarter earnings for 2023 (via Apple Insider), the ad-supported program has proven to be more successful than the $15.49 monthly Standard plan without advertisements. The upgraded Basic with Ads plan will be introduced first in Canada and Spain, with a gradual rollout to other advertising markets, including Australia, Brazil, France, Germany, Italy, Japan, South Korea, the UK, and the US.
Netflix’s Q1 revenue reached $8.1 billion, in line with its forecast, and it expects revenue of $8.2 billion for Q2, a 3% year-over-year increase. The ad-supported tier occasionally plays ads in the middle of programming, with each streaming hour containing four to five minutes of commercial time. This move by Netflix was seen as a way to increase revenue and keep subscription costs low.
The upgraded plan is definitely an improvement from the old one and should incentivize more users to sign up. Netflix has been fighting an uphill battle lately, trying to stop the bleed on its subscription numbers, a feat that seems to have been successful with the launch of the ad-supported tier – at least partially.
Additionally, Netflix has been trying to find ways to stop its users from sharing account information with their loved ones, and thus not paying for additional subscriptions. Even going as far as restricting password sharing to only users with a Standard ($15.49/month) and Premium ($19.99/month) subscription, adding to the cost with every additional person the account information is shared with.
