Netflix has axed its cheapest monthly plan that lets viewers watch without adverts.

The streaming giant has removed the lowest priced ad-free monthly subscription plan from its options available to new sign-ups.

It is understood the £7 basic ad-free package used by millions of viewers will remain open to current customers – until they either change their plan or cancel their account.

It means new customers wanting to join Netflix now have to choose between Netflix’s cheaper £4.99 standard plan - with ads that will play commercials five times during every hour of viewing - or the more expensive £10.99 standard account that comes without adverts and allows for two simultaneous streams.

A £15.99 ad-free plan available with four streams is also on offer under the premium option.

Getting rid of the basic and cheapest ad-free plan is understood to be part of Netflix's efforts to grow the business both here and on the other side of the Atlantic.

Earlier this year the company also began clamping down on those Netflix accounts sharing passwords with people outside of their own home as it attempted to grow its base of paying subscribers.

News of the change, which applies currently to UK, US and Canadian customers, came just ahead of the release of Netflix’s latest financial results.

The company ended the first six months of the year with more than 238 million subscribers – an increase of 5.9 million since March.

But despite the subscriber gains, Netflix’s quarterly revenue rose to $8.18bn falling short of the $8.3bn forecast. The firm said strikes among US writers and actors, which it was working hard to find a resolution to along with others in the industry, would also impact the company in the months ahead.