Netflix (NFLX) has quietly removed its lowest-priced ad-free streaming plan in the US just ahead of its quarterly earnings results on Wednesday.
The "Basic" plan had been offered to US consumers for $9.99 a month. The removal of this plan, which the company also did in Canada last month, comes as Netflix has touted the success of its recently launched ad-supported offering, which comes at a cost of $6.99 per month.
For ad-free experiences, Netflix now offers plans that start at $15.49 per month.
"The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account," Netflix wrote on its website.
In its last quarterly report, Netflix revealed more insights into its ad-supported tier, telling shareholders in the release: "While it's still very early days, we continue to be pleased with our progress across all key dimensions: member experience, value to advertisers and incremental contribution to our business. Engagement on our ads tier is above our initial expectations and, as expected, we’ve seen very little switching from our standard and premium plans."
Executives previously said engagement for ad-supported subscribers is comparable to the ad-free plan, noting it has not seen consumers trade down from premium plans.
"We wouldn't be getting into this business [if] it couldn't be a meaningful portion of our business," Netflix CFO Spencer Neumann said in January.
He explained that the goal is for advertising to "be bigger than at least 10% of our revenue and hopefully much more over time." Netflix will report second quarter earnings after the bell on Wednesday.
Analysts expect a solid print on the heels of encouraging data surrounding both the ad tier and the streaming giant's password-sharing crackdown, coupled with optimistic reports on its position to weather potentially long-lasting Hollywood strikes.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected]
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