For many Netflix subscribers, the dreaded day has arrived. The streaming giant has begun phasing out its cheapest ad-free plan, the Basic tier, leaving users with a choice: pay more or accept ads.

This news comes after Netflix announced its intention to retire the Basic plan in specific regions back in January. Now, subscribers in Canada and the UK are receiving notifications informing them that their current plan is being discontinued and they need to select a new one by July 13th to keep watching.

While the rollout seems gradual, similar to past changes Netflix has implemented, users in the United States haven’t reported receiving such notifications yet.

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This shift means that continuing with Netflix will require selecting a new subscription tier. The available options present a dilemma: either pay a higher monthly fee or endure advertisements.

For those who can stomach commercials, the cheapest option is the Standard with ads plan at $6.99. However, if you prefer an ad-free experience, the new entry point is Standard at $15.49. Premium, offering 4K content, remains the most expensive tier at $22.99.

While Netflix hasn’t officially commented on the reasoning behind retiring the Basic plan, the move likely boils down to finances. An ad-supported tier is simply more profitable for the company. This change might nudge many subscribers towards the cheaper ad-supported option or incentivize them to upgrade to a higher tier altogether.

This decision marks a significant shift for Netflix. Back in 2020, the company firmly denied any interest in introducing an ad tier. However, facing financial pressures, they reversed course in 2022, launching the ad-supported plan. Ironically, the ad-free Basic plan has been a success story, attracting over 40 million subscribers. According to a 2023 earnings call, ad-supported accounts seem to be more valuable to Netflix than those paying a premium for an ad-free experience.

If you’re a Basic plan subscriber who hasn’t received the notification yet, consider yourself fortunate. But don’t get too comfortable – the warning is likely coming your way soon. Ultimately, you’ll have to decide whether to increase your monthly expenditure or embrace the world of Netflix with commercials. Neither option is ideal, but the future of Netflix seems to be leaning towards an ad-supported model.