Netflix is considering another round of price increases in the near future, as reported by The Wall Street Journal. The streaming giant is said to be planning this price hike to occur “a few months” after the Hollywood actors’ strike concludes, a development that could transpire in the coming weeks.
According to the WSJ, Netflix intends to implement these price increases in “several global markets,” beginning with the United States and Canada. The exact extent of the price hike remains undisclosed, and Netflix has refrained from providing any comments.
Notably, Netflix raised prices for all its subscription tiers last year, with the ad-free Standard plan reaching $15.49 per month and the Premium plan at $19.99 per month. Additionally, the company introduced a $6.99 per month ad-supported plan and subsequently discontinued its mid-tier $9.99 per month ad-free offering.
Earlier this year, Netflix initiated measures to combat password sharing, introducing an additional $7.99 per month charge for sharing accounts with individuals outside of one’s household. This latest price increase discussion coincides with the gradual return of Hollywood to production following the resolution of the Writers Guild of America (WGA) strike.
The WGA contract, which is currently being voted on, will have implications for streaming platforms like Netflix, as it mandates sharing of streaming data with writers and guarantees compensation increases for high-budget streaming films and residuals.
Although the WGA’s calculations suggest that the new contract’s cost will only represent a small fraction of Netflix’s annual revenue, the streaming giant is likely holding off on implementing the price hike until the conclusion of the actors’ strike. This strategic move aims to align the price increase with a surge in new content, as raising costs when there is a dearth of new releases would be less favorable. Once both writers and actors return to work, Netflix can leverage the influx of fresh shows and movies to justify the proposed price hike.