Netflix to Hike Prices After SAG-AFTRA Strike Concludes
By Movieguide® Contributor
Streaming mega-giant Netflix announced plans to raise its prices after the Hollywood strikes are officially over.
“Netflix plans to raise the price of its ad-free service a few months after the continuing Hollywood actors strike ends, the latest in a series of recent price increases by the country’s largest streaming platforms,” The Wall Street Journal reported.
The company’s shares have gone up by 3% since Netflix released the news. The amount of the price increase isn’t stated, but the hike will start with the U.S. and Canada and might include other countries.
Netflix changed some of its policies earlier this year.
Reuters reported, “Netflix cut prices of its subscription plans in some countries in February. In the same month, it laid out a plan to crack down on password sharing by subscribers that was rolled out in over 100 countries in May.”
Movieguide® reported that since Netflix’s password crackdown, the platform “has seen a significant rise in new member sign-ups, many of whom are opting for the new ad-tier subscription level.”
The Verge reported, “Netflix raised prices across all of its plans last year, bringing the ad-free Standard tier to $15.49 / month and the Premium plan to $19.99 / month. The company also rolled out a $6.99 / month ad-supported plan and later axed its mid-tier $9.99 / month basic ad-free plan.”
This year, Netflix takes the same path as its peer streaming platforms. Movieguide® recently reported about other streaming companies’ price increases:
In addition to sharing restrictions, Disney+, Hulu and ESPN raised subscription prices as of October 1.
Variety reported, ‘Disney+ Premium (with no ads) increases to $13.99/month, up $3; Hulu without ads will also increase by $3 to $17.99/month; and ESPN+ will increase by one dollar, to $10.99/month.’
The Bridge financial analyst Jamie Lumley believes Netflix wants to raise prices because content prices will increase. As the platform spends more, it needs to think about “underlying profitability.”
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