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Spokane, Washington  Est. May 19, 1883

Netflix pulls lowest-priced ad-free plan in the U.S. and U.K.

 (Tiffany Hagler-Geard/Bloomberg)
By Rob Golum Bloomberg

Netflix, which reports second-quarter financial results Wednesday after markets close in the U.S., stopped offering its lowest-priced commercial-free plan at home and in the U.K.

The change means new or rejoining customers can no longer sign up for the $9.99-a-month basic ad-free service. Subscribers who have that plan can stay with it, the company said.

The change will push consumers in one of two directions. Cost-conscious shoppers will be more likely to choose the cheaper plan with commercials, while people who want ad-free viewing will have to choose a pricier plan.

The cheapest ad-free plan is now priced at $15.49 a month in the U.S. , according to a posting at the company’s website. The standard plan with advertising is priced at $6.99 monthly, and the premium plan, which allows more users and offers ultra-high definition, is $19.99 .

Netflix is pursuing a twofold strategy to accelerate revenue growth: It’s offering new customers a tier that includes advertising, and it’s cracking down on password sharing by encouraging subscribers to buy an added membership for friends or family members who use their accounts.