Netflix Ends Lowest-Priced Ad-Free Plan In The US: Here Are Your Choices Now – Netflix (NASDAQ:NFLX)

Netflix Inc. NFLX has decided to discontinue its most affordable ad-free subscription plan in the United States and France beginning Thursday.

What Happened: In a letter to shareholders, the streaming behemoth said that it would phase out the basic ad-free plan, which was priced at $11.99 per month.

Netflix ceased offering the basic plan to new subscribers last year in July but permitted existing customers to retain their subscriptions provided they didn’t cancel or alter plans.

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The basic plan is no longer available as an option for U.S. subscribers on its Plan and Pricing page. Netflix’s other plans include a $6.99 monthly option with ads, a $15.49 monthly standard HD video quality plan (no ads), and a $22.99 premium Ultra HD plan (no ads).

Netflix subscribers in the U.S. and France currently on the Basic plan will have to select a new plan, the company announced. Impacted members will start receiving email notifications.

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Why It Matters: Netflix’s decision to discontinue its lowest-priced ad-free plan comes on the heels of its second-quarter earnings report. The streaming giant reported second-quarter revenue of $9.56 billion, marking a 16.8% year-over-year increase.

The revenue total surpassed a Street consensus estimate of $9.53 billion, according to data from Benzinga Pro.

Netflix concluded the second quarter with a total of 277.65 million paid subscribers, marking an addition of 8.05 million during the period. The company also reported a 34% quarter-over-quarter increase in its ad-supported membership during the second quarter.

NFLX Price Action: Netflix shares ended Thursday’s session down 0.68% at $643.04. In the after-hours session, the company’s shares dropped a little more, and at the time of writing, they were at $641.89.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.