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Netflix Prepares For Another Price Hike Post-Hollywood Strike

Ed Abbas by Ed Abbas
October 4, 2023
Reading Time: 1 min read
Netflix Prepares For Another Price Hike Post-Hollywood Strike

Image Credit: PCMag

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Netflix is reportedly gearing up to increase its subscription rates once more, as disclosed by The Wall Street Journal. The streaming titan is slated to roll out the price escalation shortly after the culmination of the Hollywood actors’ strike, expected to wrap up in the near future.

The price increase will first hit users in the US and Canada before extending to other global markets. Although the exact jump in price remains under wraps, it’s worth noting that Netflix previously hiked its rates last year, setting the ad-free Standard package at $15.49/month and the Premium tier at $19.99/month. The platform also launched an ad-supported subscription at $6.99/month and subsequently discontinued its $9.99/month basic ad-free plan.

Additionally, in a bid to mitigate account sharing, Netflix introduced a supplementary $7.99 monthly fee for users sharing access outside their households. This latest decision to up prices is notably timed with Hollywood’s anticipated return to regular operations. Notably, the Writers Guild of America (WGA) recently concluded its strike and embarked on voting for a contract encompassing prominent Hollywood studios, including Netflix. The fresh agreement obliges platforms such as Netflix, Disney Plus, and Hulu to disclose streaming metrics to the WGA, providing writers with insights into their content’s performance. Moreover, the pact ensures that streaming feature writers receive a minimum pay boost of 18% for high-budget movies and a 26% rise in residuals. WGA’s estimation pegs the contract’s cost at a mere 0.2% of Netflix’s yearly revenue.

Netflix’s impending price adjustment, juxtaposed with its earlier measures, accentuates the streaming behemoth’s efforts to stay lucrative and competitive in an ever-evolving digital entertainment landscape. The move underscores the delicate balance between meeting production costs and ensuring subscriber retention.

Tags: Netflix

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