In a recent report by The Wall Street Journal, it has been revealed that streaming giant Netflix is preparing to increase subscription prices once again, following a strategy it implemented last year. The price hikes are expected to occur a few months after the ongoing Hollywood actors’ strike concludes, potentially within the coming weeks.
Netflix is set to apply these price adjustments in several markets globally, starting with the US and Canada. Although the exact amount of the price increase remains undisclosed, last year saw the Standard tier escalate to $15.49 per month and the Premium plan to $19.99 per month. The streaming platform also introduced a $6.99 ad-supported plan while discontinuing the mid-tier $9.99 ad-free plan. This recent price increase aligns with Hollywood’s progression toward resuming full-scale operations. The Writers Guild of America (WGA) recently ended its strike, initiating negotiations on a new contract with major Hollywood studios, including Netflix.
Under the new contract, streaming services like Netflix, Disney Plus, and Hulu are mandated to share streaming data with the WGA, granting writers insights into their content’s performance. Additionally, the contract ensures an 18% minimum compensation increase for writers of high-budget films and a 26% hike in residuals. Meanwhile, Hollywood actors are still on strike, temporarily halting some productions. Netflix seems to be strategically waiting for the strike to conclude before implementing the price hike, aligning with the anticipation of a new show and movie surge once both writers and actors return to work.
In a related development, The Wall Street Journal also reported that Disney Plus is considering the introduction of a new live sports tier outside the US. Disney Plus, a platform known for periodic price increases, is set to implement its most recent hike later this month, demonstrating the evolving dynamics of the streaming industry.
