In a move to drive more viewers towards its cheaper ad-supported plan, Netflix has announced that it will be phasing out its lowest-priced ad-free subscription plan in the United States. This decision comes as the streaming giant aims to capitalize on the growing popularity of its ad-supported option.

According to a letter sent to shareholders on Thursday, Netflix stated that it will be discontinuing the basic ad-free plan, previously priced at $11.99 per month, not only in the U.S. but also in France. This follows the company's decision to drop the basic plan in the U.K. and Canada.

While the basic ad-free plan is no longer displayed as an option for U.S. subscribers on the Plan and Pricing page, existing customers on this plan can continue to remain subscribed as long as they don't make any changes or cancel it. The phase-out for new subscribers commenced in July 2023.

Netflix now offers a range of subscription plans to cater to different preferences. These include a $6.99 monthly option with ads, a $15.49 monthly standard HD video quality plan without ads, and a $22.99 premium Ultra HD plan also without ads.

The introduction of an ad-supported plan in November 2022 has proven to be a success for Netflix. The company reported a 34% increase in subscriptions during the April-June 2024 period, although the exact number of subscribers added was not disclosed.

USA TODAY received a statement from Netflix, stating that subscribers in the U.S. and France currently on the Basic plan will need to choose a new plan. Affected members will receive email notifications starting from today.

During a video conference discussing the company's second-quarter performance, co-CEO Greg Peters emphasized the attractiveness of the ad-supported option. He highlighted that it provides a better experience with the inclusion of two streams, higher definition, and the ability to download content, all at a lower price. However, for those who prefer an ad-free experience, the Standard or Premium plans are still available.

Netflix continues to experience significant growth, reporting its third consecutive quarter of double-digit revenue growth. In the second quarter of 2024, the company generated $9.56 billion in revenue, reflecting a 16.8% increase compared to the same quarter in 2023.

The addition of over 8 million subscribers in the second quarter has contributed to Netflix's success. This boost in subscriptions can be attributed to the return of highly anticipated series like "Bridgerton" and "Baby Reindeer," as well as the recent live event "The Roast of Tom Brady." Additionally, the company's efforts to crack down on password-sharing may have also played a role in this growth.