Plex launched the service in 2016, allowing users to stream media from cloud platforms using Google Drive, Amazon Drive, Dropbox, and OneDrive.
The company previously encountered technical challenges around integrating these cloud services in its platform, and has been working to address problems with performance.
Plex disabled server creation for new Plex cloud users earlier this year, and has now confirmed it cannot deliver a high-quality experience to Plex Cloud users at a reasonable cost.
"We hold ourselves to a high standard, and unfortunately, after a lot of investigation and thought, we haven't found a solution capable of delivering a truly first-class Plex experience to Plex Cloud users at a reasonable cost," it said.
The company encourages users to set up a Plex Media Server on their local network instead.