The Wall Street Journal reported that Netflix is about to raise the price of its streaming service yet again. A “few months” after the Hollywood actor strike ends, which may occur in the upcoming weeks, the streamer will reportedly announce the price increase.
Netflix will increase PRICES in “several markets globally,” starting with the US and Canada, according to the Wall Street Journal. The amount of the price increase for Netflix is currently unknown, and the company declined to comment. In the past year, Netflix increased the cost of each of its plans, raising the ad-free Standard tier to $15.49 per month and the Premium plan to $19.99 per month. Additionally, the corporation launched a $6.99/month ad-supported option before discontinuing its $9.99/month basic ad-free subscription.
This year, in an effort to discourage password sharing, Netflix began charging an additional $7.99 per month for accounts shared with non-family members. As Hollywood nears a resumption of production, it makes sense to increase rates once more. The Writers Guild of America (WGA) ended its strike last week and began voting on an agreement with major Hollywood studios, including Netflix, that has the potential to transform the streaming industry.
As part of the new agreement, Netflix, Disney Plus, Hulu, and other services will be required to share streaming information. This will allow authors to evaluate the performance of their content. In addition, the agreement guarantees writers of streaming features a minimum 18% pay increase for costly films and a 26% increase in residuals. The WGA estimates that the cost of their new contract will account for less than 0.2% of Netflix’s annual revenue.
Since Hollywood actors are still on strike, a number of films are currently on pause. Given that it seems counterproductive to raise fees when no new content is being released, Netflix will likely wait until the strike is over before doing so. Once writers and actors return to work, there will likely be a flood of new television programs and films, which Netflix can use to justify the price increase.
In addition to the Netflix news, the WSJ reports that Disney Plus may introduce a new live sports subscription outside the United States. Previous fee increases for Disney Plus have occurred, and the most recent one will take effect later this month.