Netflix reportedly plans to increase its streaming service’s cost in the next month.
This is likely to happen a few months after the conclusion of the Hollywood actors’ strike.
This potential price hike will impact several global markets, including the United States and Canada.
However, the exact amount of the price increase remains undisclosed at this time.
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Netflix’s previous price increase
Last year, Netflix raised prices across all of its subscription categories.
Additionally, the standard and Premium plans reached higher price points of this hike.
The company also introduced an ad-supported plan at a lower cost and eliminated its mid-level basic ad-free package.
Earlier this year, the streaming service implemented measures to combat password sharing.
However, it introduced extra charges for users sharing their accounts with individuals outside their households.
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Why hike prices?
This impending price increase aligns with developments in the Hollywood industry.
The Writers Guild of America (WGA) recently ended its strike and began negotiating a new contract with major studios.
One of the studios includes Netflix. The new contract mandates that streaming services share streaming data with the WGA.
This will allow writers to assess the performance of their content for transparency on income streams.
The deal also includes minimum compensation increases for writers of high-budget streaming films and higher residuals.
However, while Hollywood writers have resumed work, actors are still on strike, leading to production delays.
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Nevertheless, Netflix is likely waiting for writers and actors to return to work before implementing the price hike.
Furthermore, this is a strategic move since increasing prices during a content drought may not be strategically advantageous.
The studios may use the influx of new shows and movies once production resumes to help justify the price increase.
The Wall Street Journal also reports that Disney Plus may introduce a new live sports package outside the United States.
Nonetheless, Disney Plus has also had to hike prices in the past, with projections stating that it will soon follow Netflix.
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