STREAMING giant Netflix will scrap its cheapest ad-free plan in Australia from as soon as next week.

The shock move comes as the company looks to grow its revenue by pushing its more frugal customers to pay for a plan with ads.

At $10.99 a month, the basic plan is the cheapest ad-free option currently available to Netflix subscribers.

But new and rejoining Australian streamers will soon need to pay at least an extra $6 to sign up for uninterrupted viewing: a total of $16.99 for the standard ad-free plan or $22.99 for the premium ad-free plan.

Those keen to keep their costs down can sign up for a standard plan with ads for $6.99 a month.

Customers who already have the basic $10.99 plan – the only plan that offers a reduced video quality and streaming resolution of less than 1080p – will be able to continue using it.

Netflix revealed the major change on Tuesday in a letter to shareholders after enacting it in the US, UK, Canada, and Italy.

The letter read: “We’ll be making the same change in Germany, Spain, Japan, Mexico, Australia, and Brazil next week.

Read Related Also: Jack Grealish wins planning battle to build a leisure suite at his £5.6M pad complete with a juice bar, pool, gym and spa as he plans huge make-over

“Our immediate priority is building our ad membership so that Netflix becomes an essential buy for advertisers.”

The change will take effect in Australia from Monday, October 23.

Netflix said “building our ad membership so that Netflix becomes an essential buy for advertisers, which is key for advertising to become material to our business” was its “immediate priority”.

The phasing out of the basic plan for new and rejoining members in the US, UK, Italy, and Canada has so far boosted memberships where viewers have to endure ads by “nearly 70 per cent quarter-over-quarter”, according to the streaming giant.

Netflix also announced pricing hikes for some plans in the UK, US, and France would effect immediately.

It hiked the price of its premium subscription package in the UK following rumours of a rise earlier this month.

In a financial update today, it also shared its controversial crackdown on password sharing had won it 8.8 million new subscribers.

Almost nine million households signed on to Netflix between July and September of this year, marking the biggest jump in subscription since the early Covid-19 lockdowns in 2020.