Netflix has announced the discontinuation of its basic plan, which allowed subscribers to watch ad-free content on one screen for R$ 25.90. Customers will be automatically transitioned to an ad-supported standard plan priced at R$ 20.90 per month, effective December 25, unless they cancel their subscriptions.
The email notification highlighted a '30% savings with your new monthly plan' and noted that the ad-supported version offers improved image quality (1080p compared to 720p for the basic plan) and access to two screens.
While Netflix did not specify when ads would begin, the company had previously indicated plans to eliminate the basic plan by 2024. To enjoy content without interruptions, users must now pay at least R$ 44.90 for the standard plan, which supports simultaneous streaming on two devices in Full HD, with a premium option available for R$ 59.90 that allows four devices in 4K quality.
This change follows Netflix's strategy to recover from a series of negative financial reports in 2022. The introduction of ads is part of its efforts to broaden revenue streams and came after restrictions were placed on sharing accounts among different households.
The ad-supported plan was launched in Brazil and select European countries in October 2023, following its debut in the United States in November 2022. Since entering the advertising market, Netflix's stock has surged by 175%, currently trading at US$ 794.76 (R$ 4,581).
Previously, in April 2022, the platform lost 200,000 subscribers after exiting the Russian market, which contributed to a prolonged decline in its stock value, initiated in late 2021 as pandemic-related isolation measures eased.
Historically, Netflix distinguished itself from competitors by offering subscription-based access without ads, unlike many other internet services that rely on ad revenue and data collection.