Netflix’s Cheapest Ad-Free Plan Is No Longer Available to New Subscribers

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New subscribers in the United States and the United Kingdom will now pay more for an ad-free Netflix plan. Find out how this news could impact your wallet. 

Netflix has been in the news lately. You’ve probably heard about how the popular streaming platform is cracking down on password sharing to increase memberships and boost revenue. The streaming company recently made another change impacting consumers’ checking accounts. The most affordable ad-free plan is no longer available to new subscribers in some regions, meaning new customers must pay more to access ad-free content on the platform.

Fewer membership options are available to new subscribers

Some streaming platforms only have two subscriptions: an affordable subscription with ads and an ad-free version with a higher price tag. But until recently, Netflix has had four subscription options available to consumers in the U.S. and the U.K. But now, the most affordable ad-free plan is no longer available to new subscribers or previous members who rejoin the platform.

With this change, only three plans will be available in these regions. The company’s Basic plan, a $9.99 ad-free plan, is no more for new and rejoining subscribers. Those already subscribed to this plan will remain on it until they change plans or cancel their accounts.

New subscribers must now pay between $15.49 and $19.99 monthly to stream content without advertisements. A low-cost plan with ads is still available for those who don’t mind viewing advertisements.

The following Netflix subscriptions are available to new and rejoining subscribers in the U.S.:

Standard with ads: $6.99 monthlyStandard: $15.49 monthly Premium: $19.99 monthly

If you took a break from Netflix and are considering joining again, this is news worth knowing. You’ll want to make sure you review your budget before joining to ensure you’re able to afford a subscription. Paying an extra $5.50 yearly results in $60+ extra spent each year.

How to save on the cost of streaming apps

A decade ago, it was less common for households to invest in multiple streaming platforms. But streaming apps are now a widespread expense as consumers look for affordable entertainment options. Many households invest in more than one service.

To keep your spending in check, you may want to consider rotating your streaming app subscriptions. You can pause or cancel your subscriptions whenever you want. Instead of paying for all your services monthly, you can rotate them and only pay for one or two at a time.

When you’re ready to give an old favorite a try again, all you have to do is reactivate your subscription. While this takes some planning, this can allow you to stay on budget without giving up your favorite streaming apps.

How much money can you save using this strategy? Let’s imagine you subscribe to four streaming platforms and have decided to subscribe to two each quarter instead of paying for all of them all year. Below is a breakdown of the monthly cost of each subscription:

Max (ad-free): $15.99

Netflix Standard: $15.49

Hulu (no ads): $14.99

Paramount+ with SHOWTIME: $11.99

If you pay for all four services monthly, you’d be paying $58.46 each month on streaming costs or $701.52 yearly. If you instead choose to pay for Hulu and Max at the same time every other quarter and pay for Netflix and Paramount+ at the same time every other quarter, you’d pay only $27.48 to $30.98 monthly, or $350.76 yearly, which is a savings of over $350 annually.

The money you save on streaming fees can help you boost your high-yield savings account balance. If you want to avoid overspending, this may be an excellent strategy to consider. Small financial changes like this can add up to make a big difference. For additional ways to save money on everyday costs, check out our personal finance resources.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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