Yahoo Finance Netflix axes cheapest plan in Australia. Here's what's changing
The streaming giant will offer a cheaper price point, but there’s a catch.
Netflix is axing its cheapest offering in Australia and replacing it with a more affordable service that will force users to watch ads.
The streaming giant announced it would cut its ad-free basic plan from Australia and a number of other countries from Monday in its quarter financial results.
The $10.99 a month subscription will be replaced with a $6.99 ‘standard with ads’ program.
The cheapest ad-free offering is $16.99 a month which also enables users to download programs.
The most expensive is premium which offers the ‘best’ video quality at 4k+HDR, at $22.99.
Current users will not be impacted at this stage, a spokesperson said.
Netflix said it’s “immediate priority” was building ad membership so the company was an “essential buy for advertisers”.
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There’s been cheaper ad-based subscriptions in 12 countries including the US, UK and Canada, with Netflix stating they now account for about 30 per cent of all new sign ups.
“From 23 October, we’re updating our plans in Germany, Spain, Japan, Mexico, Australia and Brazil so that new members, rejoiners, and existing members looking to switch plans, will have the choice of our Ads plan, as well as our ads free Standard and Premium plans,” a spokesperson told Finder.
Yahoo Finance contacted Netflix Australia for comment.
Prices are increasing for some plans in the UK, France and the US but Netflix did not state if Australia would be impacted.
Last year, Netflix cracked down on password sharing after reporting subscriber losses for the first time in 10 years.
Sharing a subscriptions with friends and family all over the world had resulted in a drop in revenues.
How much do Australian streaming subscriptions cost?
The average Aussie household subscribed to 3.4 streaming plans but that was much higher in younger people earlier this year.
We've looked at the cheapest plans on offer.
Netflix - standard ad-free $16.99 month
Disney+ - $13.99 a month
Stan - $10 a month
Amazon Prime - $9.99 a month
Binge - $10 a month
YouTube Premium - $14.99 a month
Kayo Sports - $25 a month
Brit Box - $8.99 a month
Apple TV Plus - $9.99 a month
Hayu - $6.99 a month
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