Australian Netflix users have been hit once again by the discontinuation of a plan — but this time, it may be for the better.
As per emails sent to subscribers earlier this week, Netflix is officially waving goodbye to its Basic plan, the lowest and cheapest tier the streamer offered from the outset. You may be thinking "Hang on a minute, that's my plan", as Netflix currently offers an AU$7.99p/m option, but let me break it down for you.
Netflix's Basic plan came into existence at the dawn of the streamer Down Under in 2015. Costing AU$10.99p/m, the Basic plan included no ad breaks, one stream, 720p resolution and a limited content catalogue, before it was retired from new sign-ups in November 2022.
Revealed in a letter to shareholders, Netflix's main reason for scrapping the plan was because it was getting paid twice when customers switched over to a plan with ads; once by the subscriber and again by advertisers. After trialling eliminating the plan, Netflix stressed the need for greater monetisation.
At the same time, the streaming giant announced its Standard with Ads plan, costing viewers just AU$6.99p/m for two screens and HD streaming. The price has since increased to AU$7.99p/m in June 2024.
Grandfathered Basic subscriptions at the time did not get rolled onto the new tier and could maintain their monthly plan — that was, until now. As per Netflix's email, Basic plans are being discontinued come April and all subscribers will be rolled over to the cheaper Standard with Ads plan on their billing date.
So what does the Standard with Ads plan actually include?
While the Basic plan was simple enough, the inclusions on the Standard with Ads plan are surprisingly better given the lower monthly cost. For starters, the resolution increases from standard definition to HD (1080p), matching most, if not all, standard streaming plans. It's not the most groundbreaking jump, but it's still pretty major for those accustomed to low-res streaming. Not only that, you can watch Netflix on two screens simultaneously, doubling the previous plan's capacity.
The lower cost is the biggest factor of note though, as subscribers will save 35% less on plan fees — that's AU$3p/m and AU$36 per year — after switching to the Standard with Ads plan.
Of course, all these benefits come with the serious drawback of having to watch ads. It might not be as bad as you think, though, as Netflix has previously stated that users should only experience around 5 minutes of commercials every hour. Given you'd have to fork out an extra AU$11p/m to go ad-free with Netflix's Standard plan, a few ads over an hour isn't the greatest ordeal.
If you're keen to check out what other plans (and their respective inclusions), you can read our comprehensive guide to Netflix Australia here.
