Netflix plans to increase membership fees in “several markets globally,” with the United States and Canada being the first two. Netflix has not provided any information about the upcoming price increase. Last year, Netflix increased costs across the board, with the ad-free Standard tier now costing $15.49/month and the Premium tier costing $19.99/month. The firm also introduced a cheaper ad-supported plan for $6.99 per month, and it discontinued its cheaper ad-free basic plan for $9.99 per month.
Since earlier this year, if you want to share your Netflix account with someone outside of your home, you’ll have to pay an additional $7.99 each month. As Hollywood prepares to resume production, the decision to boost rates once again makes sense. In a move that might revolutionize the streaming industry, the Writers Guild of America (WGA) halted its strike last week and started voting on a contract with major Hollywood companies, including Netflix.
The Wall Street Journal reportedly claims that Netflix will soon implement another price hike for its streaming service. A “few months” after the conclusion of the Hollywood actor’s strike, which might happen in the coming weeks, the streamer will allegedly impose the price increase.
The Wall Street Journal (WSJ) says that, in addition to Netflix news, Disney Plus may soon provide a new live sports package in markets outside the United States. The most recent price increase for Disney Plus will take effect later this month.
To further inform authors on the success of their work, the new deal requires streaming providers like Netflix, Disney Plus, Hulu, and others to exchange statistics on viewership with the WGA. Writers of streaming movies are guaranteed a minimum 18% pay rise for high-budget films, with a further 26% boost in residuals, per the terms of the contract. The WGA estimates that their new deal will cost Netflix just 0.2% of their total income per year.
Meanwhile, the Hollywood actors’ strike continues, putting a hold on the filming of several projects. Netflix is likely waiting until the strike is over before raising pricing, since doing so while no new material is being released would be counterproductive. Netflix will be able to rationalize the price hike with the abundance of new episodes and movies that will be available after performers and writers have returned to their jobs.
