Netflix Is Upgrading Its Ad-Supported Plan – CNET [CNET]

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The company says streaming quality and concurrent screens will get a bump.

kourtjackson-rv
kourtjackson-rv

Kourtnee covers TV streaming services and home entertainment news and reviews at CNET. She previously worked as an entertainment reporter at Showbiz Cheat Sheet where she wrote about film, television, music, celebrities, and streaming platforms.

Expertise Kourtnee is a longtime cord-cutter who’s subscribed to streaming services like Netflix, Hulu, Disney Plus, HBO Max, Crunchyroll, Sling, Spotify and more. As a real-life user of these services, she tracks the latest developments in streaming, the newest re Credentials

  • Though Kourtnee hasn’t won any journalism awards yet, she’s been a Netflix streaming subscriber since 2012 and knows the magic of its hidden codes.

When Netflix launched its new ad-supported subscription in November 2022, it marked a major about-face for a company that’s always stood by its commercial-free policy. Basic with Ads rolled out a month before Disney Plus dropped its own ad-based plan, and it’s now the cheapest subscription tier available on the Netflix. The plan costs $7 per month for a single stream and HD video quality, but the streamer is making changes. 

In a letter to shareholders on Tuesday, Netflix shared that although it is early, it’s seeing success with its ad-supported subscription. Therefore, the company is introducing a set of upgrades for the basic plan, including 1080p video quality (an increase from 720p) and the ability to stream on two devices simultaneously. The changes will go into effect for customers who have Basic with Ads in 12 regions, with subscribers in Spain and Canada seeing the upgrades today. 

Netflix’s ad-supported subscription costs less than rivals HBO Max ($10 with ads) and Disney Plus ($8 with ads), and the company says that the new plan contributed to subscriber growth in the first quarter of 2023. The streaming giant aims to attract more customers with the addition of new features and low price point. Netflix has not said whether there are plans to change the price of Basic with Ads or whether its ad-free basic plan will get an increase in concurrent streams. 

Below is a look at its current subscription offerings in the US.

Netflix Subscription Plans

Basic with ads Basic no ads Standard Premium
Monthly price $7 $10 $15.50 $20
Number of screens you can watch at the same time 1 1 2 4
Number of phones or tablets you can have downloads on 0 1 2 4
HD available Yes Yes Yes Yes
Ultra HD available No No No Yes

In addition to upgrading its ad-based subscription, Netflix will roll out its password-sharing fees in the US this summer in efforts to increase its revenue.