Netflix's ad-powered plan is so successful, it is now called Standard with ads

Martin Brinkmann
May 1, 2023
Music and Video

Back in 2022, Netflix announced the price for its upcoming ad-powered plan Basic with ads. For $6.99 per month, Netflix customers would be able to watch most content for a reduced price and with advertising interruptions. The price of the plan with ads differed by region, but it was always cheaper than Netflix's lowest plan without ads, Basic.

Netflix started to crack down on password sharing in some regions at the same time and introduced a new option to buy one or two extra slots. Families could buy extra slots for family members at college, or for sharing with family members who live in another household. These extra options are available for Standard and Premium subscribers only, and they cost more in some regions than the Basic with ads plan.

It looked as if Netflix was making the ad-powered plan more attractive, but these extra member options provided subscribers with higher resolutions and options to download shows and movies to their devices.

In March 2023, Netflix revealed that its ad-supported plan had crossed the 1 million subscriber mark in the United States alone, and that it was earning the company more than the company's Basic plan.

netflix standard with ads

Netflix announced that it made the decision to improve the Basic with ads plan. It would unlock a second simultaneous stream for the plan and increase the supported resolution to full HD. Netflix's Basic plan, the one without ads, supports only only HD streams and streams on one device at a time.  It does support downloads, which the ad-supported plan does not support.

All other features resemble that of Netflix's Standard plan now, which is probably the reason why Netflix decided to rename the Basic with ads plan to Standard with ads.

The renaming makes a lot of sense, considering that the ad-supported plans has more in common with the Netflix Standard plan than with the Basic plan. Netflix's Standard plan costs $15.49 per month, which is more than two times the price of the ad-supported plan.

Both plans allow subscribers to stream content on two devices simultaneously and watch in 1080p resolution. The Standard plan comes without advertisement and it allows downloads on up to two devices.

Increasing the attractiveness of the Standard with ads plan could result in more customers subscribing to the plan. Some might switch from Basic or Standard to Standard with ads, and new customers may select the plan instead of the two others.

It is clear that Netflix wants customers on that plan, especially customers who might pick the Basic plan otherwise, as it brings in more revenue than that plan.

Now You: are you a Netflix subscriber? Which plan have you selected or would you select?

Netflix's ad-powered plan is so successful, it is now called Standard with ads
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Netflix's ad-powered plan is so successful, it is now called Standard with ads
Netflix's Basic with ads plan is so successful, the company decided to rename it to Standard with ads and improve it.
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  1. Kirk said on May 2, 2023 at 6:27 am

    I don’t trust Netflix honestly after my experience with Amazon. Amazon’s music service just didn’t stream for me across any linux distro(even trying on different browsers). It was a problem specific to Amazon since Spotify and local(from my country’s) streaming services worked. As for Amazon Video, it streamed at DVD quality, something around 480p.

    Why should I pay for a service that will serve me DRM controlled content that would probably not even stream at 720p on my hardware? Not to mention watching content in a web browser seems so clunky to me instead of an app like mpv or vlc.

    1. basingstoke said on May 2, 2023 at 10:18 am

      Piracy is literally better, lol

  2. yanta said on May 2, 2023 at 2:07 am

    So $7.99USD is about A$11.99. So for A$12 a month I can watch ads, have access to 10% of the library and only watch content at a max resolution of 720p unless I want to use Chrome or Edge (I can’t remember which one they say supports 1080p).

    Gee, what a bargain. Not!

    Well, I guess I could also watch ad supported versions of Disney+, Youtube, pronto, Foxtel, Fetch, Stan, Hulu (oh wait, not available in Australia), and get maybe 50% of the content US viewers get and pay A$300 a month. Sounds like a real solid investment.

    Surely there are better things one could spend their time on?

    1. Kirk said on May 2, 2023 at 6:31 am

      I understand. In my country, HBO was available on X platform as part of a deal. Recently, they pulled out and signed a new deal with Y streaming company here. So, if someone wishes to see HBO legally here, he/she would have shelled out for 2 different streaming services.

  3. Someone said on May 2, 2023 at 1:14 am

    Its a pitty, Netflix. Even Spotify doing better than you.

  4. Anonymous said on May 1, 2023 at 10:39 pm

    A fool and his money are soon parted.

  5. John G. said on May 1, 2023 at 2:03 pm

    The most ridiculous expense that someone can do nowadays.

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