Netflix customers in some nations will quickly must pay extra to observe TV and films with out ads. 

In a shareholder letter from Tuesday, the streaming service mentioned it is trying to “retire” its least expensive ad-free plan in “a few of our adverts nations.” Netflix will implement the change in Canada and the U.Ok. within the second quarter of the 12 months earlier than “taking it from there,” the letter mentioned. 

The corporate didn’t specify when (or whether or not) the change would impression U.S. subscribers.

“Our intention is to make adverts a extra substantial income stream that contributes to sustained, wholesome income development in 2025 and past,” the shareholder letter learn.

There may very well be extra value hikes down the road.

“As we spend money on and enhance Netflix, we’ll often ask our members to pay somewhat additional to replicate these enhancements, which in flip helps drive the optimistic flywheel of extra funding to additional enhance and develop our service,” in accordance with the shareholder letter.

Final 12 months, Netflix stopped permitting new and returning subscribers within the U.S., U.Ok. and Canada to pick its primary plan. American subscribers who have been grandfathered into Netflix’s primary plan noticed a value hike final 12 months after Netflix raised that plan’s value from $9.99 to $11.99 a month. The corporate additionally hiked the value of its costliest plan within the U.S. to $22.99.

The video streaming service additionally began a crackdown on password sharing final 12 months. 

The present lowest-tier plan out there for Netflix newcomers is the $6.99-per-month ad-supported plan. Some TV exhibits and films should not out there below the plan. The most cost effective ad-free plan for newcomers is the $15.49-per-month commonplace plan.

In keeping with Netflix, the adverts plan at present accounts for 40% of recent sign-ups in advert markets. The corporate mentioned it added 13.1 million subscribers final quarter, boosting its whole to round 260 million globally.