Netflix is set to raise its prices yet again. The streaming platform could implement its next price raise soon as per a report from the Wall Street Journal. What does this mean for subscribers? I think the situation of things here if this goes through is self-explanatory.
Netflix Is Set To Raise Its Prices
Netflix as you should know is currently planning to increase the cost of its streaming service yet again, as per a report from The Wall Street Journal. The streamer in question will reportedly issue the price hike a “few months” after the Hollywood actor’s strike stops/ends, which could in question happen in the next couple of weeks.
Netflix just as reported by the WSJ, will raise prices in “several markets globally,” kicking things off with the US and Canada. It is however still not clear as to just how much Netflix will raise prices, and Netflix in question has declined to comment on the development. Netflix raised prices across all of its plans in the previous year, in the process bringing the ad-free Standard tier to $15.49 / month and the Premium plan on the other hand to $19.99 / month. The company also reportedly rolled out a $6.99 / month ad-supported plan and axed its mid-tier $9.99 / month basic ad-free plan later.
Netflix Password Sharing Crackdown
Netflix in the early parts of this year reportedly cracked down on password sharing and began charging an extra $7.99 per month to share your account with someone that is outside your household. The move in question to raise prices again also comes as Hollywood moves closer to getting back to work. Just in the previous week, the Writers Guild of America (WGA) ended its long strike and started voting on a contract with major Hollywood studios, which is inclusive of Netflix, which could reportedly change the business of streaming.
The New Proposed Contract of the WGA
For instance, Netflix, Disney Plus, Hulu, as well as other services will now have to share streaming data with the WGA under the new proposed contract, thus enabling writers to see just how well their content performed. The contract in question also grants writers of streaming features a minimum compensation increase of 18 percent for high-budget movies, along with a 26 percent increase in residuals. As per the calculations of the WGA, the cost of their new contract will reportedly amount to just 0.2 percent of the annual revenue of Netflix.
Netflix Waiting to Increase Its Prices
Hollywood actors meanwhile still remain on strike, which simply means that some productions are still on pause. Netflix is very much likely waiting until the end of the strike to raise its prices, as hiking up costs when no new content is coming out doesn’t really seem like a smart move. And once both writers and actors are back to work, there will very much likely be a whole lot of new shows and movies coming out that Netflix can use to justify the said increase in its prices.
Disney Plus To Launch A New Live Sports Tier Outside the US
And in addition to the news about Netflix, the WSJ on the other hand also reports that Disney Plus could launch a new live sports tier and plan outside the US. Disney Plus as you should know is no stranger to price hikes, either, as its most recent one goes into effect in the later parts of this month.
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