It's almost completely gone in the US on Netflix also. I've had better luck watching older movies on Youtube 'Free with Ads' service, especially 80s and 90s movies, than I've had on Netflix. And there's no ads if you get Youtube's premium service (I currently don't, but don't mind the ads).
Currently on there is Wrongfully Accused (funny Leslie Nielsen movie), Glengarry Glen Ross, Robocop (1987), Ghost in the Shell, The Mask, License to Drive, The Neverending Story, Tombstone, Leon The Professonal, The Amityville Horror, Over the Top (some Stallone movie), Miracle on 34th Street, Con Air, Edward Scissorhands, Gone Fishin', Look Who's Talking, While You Were Sleeping, The Craft, Red Dawn, So I Married an Axe Murderer, Secret of Nimh, Killer Klowns from Outer Space, Revenge of the Pink Panther, Mad Max, Das Boot, Little Shop of Horrors, Hackers, Children of the Corn, Death on the Nile (1978 version, remade recently), Delirious, Rock-a-Doodle, The Big Boss (Bruce Lee, 1971), Babes in Toyland, Samson an Delilah (1950), The Grapes of Wrath (1940), The Seven Year Itch (Marilyn Monroe, 1955) .... okay, I'm just going to stop now, but it keeps going, I'm only a third of the way though the list.
Also it's newer, but one of my favorite movies is currently free with ads on there: Kung Fu Hustle, a hilarious and ridiculous spectacle with excellent choreography.
Only downside is you never know how long they'll stay on there, it doesn't seem to be as long as other services, so you kind of need to check the list often and watch the ones you want to see while they're on there. I think I had a similar comment on here six months ago and the list I had then would have been completely different.