Netflix's Four Subscription Tiers and What You Pay
Netflix offers four subscription plans in the United States: Basic, Standard, Premium, and Basic with Ads. Each plan differs in monthly cost, video quality, number of simultaneous streams allowed, and whether ads appear during content. The exact price of each plan changes periodically, so the amounts listed here may shift — you can see current pricing on Netflix's website when you sign up.
Basic is the lowest-cost option and includes standard definition (SD) video quality on one screen at a time. Standard costs more but allows high definition (HD) video and two simultaneous streams. Premium is the most expensive and provides 4K video quality with four simultaneous streams. Basic with Ads costs less than Basic but includes advertisements during shows and films, with one stream at a time and SD video quality.
All four plans give you access to Netflix's full library of shows, films, and games — the difference is how many people can watch at once and how sharp the picture looks. If you live alone or watch alone most of the time, Basic or Basic with Ads may be enough. If multiple people in your household watch at the same time, you need Standard or Premium.
Key Takeaways
- Basic with Ads is the cheapest option but includes commercials and allows only one person to watch at a time in standard definition.
- Standard offers HD video quality and two simultaneous streams for a mid-range price with no ads.
- Premium costs the most but provides 4K video, four simultaneous streams, and no ads.
- All plans include access to the same content library — the difference is picture quality, number of people watching together, and whether ads appear.
- Netflix prices change periodically, so the cost of each plan may be different when you sign up than it was months ago.
Video Quality and How Many People Can Watch Together
Video quality matters most if you have a large TV or watch on a computer monitor. SD (standard definition) is the lowest quality and looks noticeably pixelated on screens larger than a phone or tablet. HD (high definition) is sharper and is what most people see on regular televisions. 4K (ultra high definition) is the sharpest available and requires both a 4K TV and a fast internet connection — most people cannot see the difference on smaller screens.
The number of simultaneous streams is how many people can watch Netflix at the same time on different devices. Basic allows one person. Standard allows two people watching different shows or films at the same moment. Premium allows four people. If you try to watch on a fifth device while four are already streaming on Premium, Netflix will ask you to stop one of the other streams.
Households with children, roommates, or partners often need Standard or Premium because multiple people want to watch at different times of day. A single person or a couple who watches together usually finds Basic or Standard sufficient.
Basic with Ads: Lower Cost, Commercials During Content
Basic with Ads is Netflix's cheapest plan. In exchange for the lower price, you see advertisements during shows and films. The number and length of ads varies — some content has ads only at the start, while other content has ads throughout. Netflix does not let you skip ads the way you might on YouTube.
Basic with Ads also limits you to one stream at a time and standard definition video quality. You cannot read content to watch offline, a feature available on the other three plans. If you watch Netflix mostly alone and do not mind ads, this plan cuts your monthly cost significantly.
Some shows and films are not available on Basic with Ads — Netflix restricts a small portion of its library on this plan due to licensing agreements with content creators. You will see which titles are unavailable before you try to watch them.
Standard and Premium: No Ads, More Streams, Better Picture
Standard and Premium both remove ads entirely. The main difference between them is video quality and the number of simultaneous streams. Standard gives you HD video and two streams; Premium gives you 4K video and four streams. Both plans let you read content to watch later on phones and tablets.
Premium is worth the extra cost only if you have a 4K TV and a fast internet connection (Netflix recommends at least 25 megabits per second for 4K), or if more than two people in your household regularly watch Netflix at the same time. If you have a regular HD television and fewer than three people watching simultaneously, Standard provides everything you need.
Both Standard and Premium include access to Netflix's full content library with no restrictions. You can pause a show, switch to another device, and resume where you left off.
Sharing Your Account and Extra Member Fees
Netflix's rules about account sharing have changed. You can share your password with people outside your household, but Netflix charges an extra fee for each additional member beyond your plan's simultaneous stream limit. The cost of adding an extra member varies and is separate from your base subscription price.
If you share your account with someone who lives at a different address, Netflix may ask you to verify that person's location or may require them to pay the extra member fee. The company uses IP addresses and device information to determine who is in your household.
The extra member fee applies per person, not per device. If you add one extra member, you pay one fee. If you add two, you pay two fees. This is different from the simultaneous stream limit — you can have four people streaming on Premium without extra fees as long as they are all in the same household.
How to Change Plans or Cancel
You can change your plan at any time through your Netflix account settings. Log in, go to your account page, and select "Plan details." Netflix will show you the available plans and let you upgrade or downgrade when ready. Your new plan takes effect on your next billing date, not right away.
If you downgrade — for example, from Premium to Standard — you keep access to your account and all your saved shows and preferences. You straightforward lose the features of the higher plan, like 4K video or the fourth simultaneous stream.
To cancel, go to your account settings and select the option to cancel membership. Netflix will ask you why you are leaving but does not require you to give a reason. Your access ends at the end of your current billing cycle, not when ready. You can restart your subscription later, and Netflix will restore your profile and viewing history.
Free Trial and Payment Methods
Netflix does not currently offer a free trial period for new subscribers in most countries, including the United States. You must pay for a plan to create an account and start watching. Some plans cost less than others, so you can start with Basic with Ads or Basic if you want to spend less while you decide whether Netflix is right for you.
Netflix accepts credit cards, debit cards, and PayPal. You can also pay through third-party services like Apple, Google Play, or Amazon if you signed up through one of those platforms. Netflix charges your payment method on the same day each month.
If your payment method fails, Netflix will try again a few times before suspending your account. You can update your payment information in your account settings at any time.
Frequently Asked Questions
Can I watch Netflix on multiple devices at the same time with Basic?
No. Basic allows only one simultaneous stream, meaning only one person can watch at a time across all devices. If you try to start playing something on a second device, Netflix will stop the first stream. Standard allows two simultaneous streams, and Premium allows four.
Do I need a 4K TV to use Premium?
No, but Premium's main advantage over Standard is 4K video quality, which requires a 4K TV to see. If you have a regular HD television, Standard gives you the same picture quality at a lower price. Premium is also useful if four people in your household watch Netflix at the same time, since it allows four simultaneous streams instead of two.
What happens if I downgrade my plan?
Your account and viewing history stay the same. You straightforward lose the features of the higher plan — for example, if you downgrade from Premium to Standard, you lose 4K video and can only stream on two devices instead of four. The downgrade takes effect on your next billing date.
Can I share my Netflix password with someone who does not live with me?
Netflix allows password sharing but may charge an extra member fee for people outside your household. The fee varies and is added to your monthly bill. Netflix determines household membership using IP addresses and device information, so sharing across different locations may trigger a fee or a verification request.
What payment methods does Netflix accept?
Netflix accepts credit cards, debit cards, and PayPal. If you signed up through Apple, Google Play, or Amazon, you can also pay through those services. Netflix charges your payment method once per month on the same date your subscription started.