Australian Netflix users subscribed to the streaming giant’s $12.99 ad-free ‘Basic’ tier will soon have to pay more if they want to avoid ads, as the company phases out the plan and automatically moves some customers to more expensive subscriptions.

Netflix's 'Basic' subscription — which allowed users to watch one screen at a time in standard definition, without ads — was discontinued for new and returning customers in 2023, but some longer-term legacy subscribers have been able to keep it, until now.

In emails sent by Netflix to 'Basic' subscribers and seen by Information Age, some users were automatically being moved to the company's $7.99 ‘Standard with ads’ plan, while others were being placed on its $18.99 ad-free 'Standard' plan.

Information Age understands Netflix users who do most of their streaming on devices which do not support ads in the Netflix app, including some older devices, may be more likely to be automatically moved to an ad-free subscription.

A Netflix spokesperson pointed to a support page on the company's website which states, "A small percentage of Netflix-compatible devices can't be used with an ad-supported Netflix experience because the Netflix app or software on the device cannot be updated to support it."

“Most members on 'Basic' should have been notified by now, and their new plan will start on their next billing date,” the spokesperson said.

Netflix's $7.99 'Standard with ads' plan has a lower monthly cost and enables two devices to watch in high definition, but comes with ads (except on Kids profiles) and does not allow users to stream everything in the Netflix catalogue.

The more expensive $18.99 'Standard' plan without ads includes the entire Netflix library.

If you have deeper pockets, the Premium plan has remained at $25.99 and allows for four devices and up to 4K video quality.

Netflix accused of being 'money hungry'

Netflix's changes to its 'Basic' plan have faced some criticism from longtime subscribers in Australia.

“So I’m forced to either watch ads or I can pay more and have no ads…. How about I just cancel my account Netflix!? Like you don’t already make BILLIONS,” one user posted on X.

“Why discontinue a plan without ads that’s affordable for most to force people to pay nearly $8 extra a month without them,” wrote another.

“Actually just money hungry.”

Netflix Australia did not directly respond to criticism of the changes, but argued its cheapest ads plan was more affordable than similar plans from some other companies.

More ads, less password-sharing

In a letter to shareholders in October 2024, Netflix said it was “working to improve our monetisation by refining our plans and pricing” as it worked on phasing out its 'Basic' plan in the United States, France, and Brazil.

“Key is ensuring that we have a range of prices and plans to meet a variety of needs,” it said.

Netflix introduced ads to its Australian offering in November 2022, when its ad-supported plan was $6.99 per month.

Rival streaming platforms including Binge, Paramount+, and Amazon Prime Video have also launched ad-supported plans in recent years, as the video streaming industry has grown more crowded and competitive.

Companies such as Netflix and Disney+ have also cracked down on password sharing in Australia, as they battle for subscriber numbers and revenue.

Netflix remained the most popular subscription video streaming platform in Australia in 2024, with more than 6.2 million subscribers according to analyst firm Telsyte.