Netflix (NFLX) scrapped its cheapest ad-free subscription plan in the U.S. and U.K. in an effort to boost revenue ♛and draw more users to the ad-supported offering it released last year.

How Does This Impact Netflix Users?

The platform’s basic commercial-free plan, which cost $9.99 a month, was no longer available on the company's website for new or rejoining members as of Wednesday. Customers who are currently subscribed to the plan won’t be affected unless they change plans or cancel.

The cheapest option for subscribers will now be a $6.99 per month ad-supported plan, which the company introduced in November. It enables HD viewing for all but a few movies and shows, the capacity to stream on two devices, and access to unlimited mobile games, according to Netflix’s website.

Netflix's Ad-Supported Plans To Drive Revenue

Executives have praised the new ad-sup⛦ported plan 🉐in the past, touting it as a key revenue driver.

"In the U.S., it’s actually even higher than our standard plan," said Chief Financial Officer Spencer Adam Neumann regarding the plan’s revenue, on the company’s first-quarter earnings call in April.

Netflix reports its second-quarter results Wedne꧟sday afternoon.

The other options are Netflix’s Standard and Premium plans, which don’t feature any ads and allow users to download content and share their account with one or two people outside of their household, but are more expensive at $15.49 and $19.99 per month, respectively. The Premium plan also enables Ultra HD viewing on up to four devices and downloads on up to six.

Netflix is the latest major entertainment company to introduce ads to its streaming service in an effort to boost revenue and profits. Earlier this year, the company 澳洲幸运5官方开奖结果体彩网:cracked down on account sharing between households after seeing subscriber growth stagnate, blaming it in part on users sharing their login information with friends and other households.

Former Netflix CEO Reed Hastings admitted last year that the company was late to embrace advertising, as it was primarily focused on competition from major tech companies. Other streaming platforms, including HBO Max, Hulu, Peacock, and Paramount+ already had cheaper, ad-supported options in place, while Disney (DIS) was actively developing one for its Disney+ streaming platform.

Netflix shares were roughly flat on Wednesday after the announcement. They've risen more than 60% so far this year.