According to a report from the Wall Street Journal, Netflix is planning to increase prices in various markets worldwide, with the United States and Canada being the first ones affected. The exact amount of the price hike is not yet clear, as Netflix has chosen not to provide any comments on the matter. Last year, Netflix implemented price increases for all its subscription plans. The Standard tier, which offers an ad-free experience, was raised to $15.49 per month, while the Premium plan now costs $19.99 per month. Additionally, the company introduced a new ad-supported plan priced at $6.99 per month but discontinued its mid-tier basic ad-free plan originally priced at $9.99 per month.
Netflix recently implemented stricter measures against password sharing. As a result, they now offer a plan that charges an additional $7.99 per month for users who share their account with individuals outside their household. This move aims to ensure fair usage and maintain the integrity of their subscription model.As Hollywood gears up to resume production, the decision to increase prices is also being made. This development coincides with the end of the recent strike by the Writers Guild of America (WGA) and their ongoing contract negotiations with major studios, including Netflix. These negotiations have the potential to bring about significant changes in the streaming industry’s business landscape.
Under the new contract, streaming services like Netflix, Disney Plus, Hulu, and others will be required to share their streaming data with the Writers Guild of America (WGA). This development is significant because it allows writers to gain insights into the performance of their content. They will now have access to information regarding how well their work is being received by audiences.As part of the contract, writers working on streaming features will benefit from a minimum compensation increase of 18 percent for high-budget films. Additionally, they will also receive a significant 26 percent increase in residuals. These provisions ensure that writers are fairly compensated for their work in the evolving landscape of streaming media. The WGA has calculated that the cost of their new contract will only make up 0.2 percent of Netflix’s annual revenue. This relatively small percentage demonstrates that the financial impact on Netflix is minimal considering their overall earnings.
Currently, there is an ongoing strike among Hollywood actors, causing certain productions to be put on hold. This situation has implications for the streaming platform Netflix. It is expected that Netflix will wait until the strike concludes before considering any price hikes. This decision seems sensible since raising prices during a period without new content might not be perceived as a strategic move. After the writers and actors return to work, it is highly expected that there will be a surge of new shows and movies. Netflix can leverage this influx of content to support its decision to increase in offerings to subscribers. This means viewers can look forward to a wider range of options for their entertainment pleasure.
According to the Wall Street Journal, Disney Plus might be launching a new live sports tier in international markets. This news comes alongside updates on Netflix. It’s worth noting that Disney Plus has previously increased its prices, with the most recent hike set to take effect later this month.