JAKARTA - Netflix began removing basic ad-free packages in the United States (US) and Britain, after taking similar steps in Canada some time ago.
Seen on its subscription price information page, the prime ad-free package, which is priced at $9.99, is no longer available to new members or re-joined members.
However, customers who are subscribed to now will not be affected unless they choose to change or cancel the package.
Now, as the cheapest option, Netflix only leaves the Standard option with an ad priced at $6.99 per month.
"In the 1st quarter (Q1), we lowered prices in a number of underprivileged markets, and in the 2nd quarter, we gradually suspended basic ad-free packages for new members and re-joined Canadians (members already in basic ad-free packages are not affected)," Netflix said in its earnings report yesterday.
"We are now doing the same in the US and UK. We believe our entry prices in these countries are 6.99 US dollars, 4.99 pounds sterling in the UK, and 5.99 US dollars in Canada provide the best value for consumers given the breadth and quality of our catalog," he added.
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Netflix's move is claimed to be an attempt to get more registration on newly launched ad-supported options, as quoted by CNBC International and The Verge, Thursday, July 20.
Bahkan, Chief Financial Officer Netflix Spencer Neumann mengatakan ekonomi dari paket yang didukung ad lebih tinggi daripada paket dasar.
"This is actually even higher than our standard plan. Advertising adds to its revenue and profit," said Neumann.
In addition to announcing to stop the basic ad-free package, Netflix has also successfully obtained 6 million paid subscribers as a result of blocking users of various passwords.
Netflix's additional paid subscribers were successfully achieved over the three months ended in June, bringing the total to more than 238 million globally.
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