Netflix may raise price after end of writers’ and actors’ strikes
Netflix could get more expensive in the coming months. According to a report from the Wall Street Journal, the streaming service would be waiting for the Hollywood strikes to end to increase the price of the plan with ads.
According to the publication, the increase would be in several global markets, but would likely start with the US and Canada.
It is not yet known how much the increase would be or when it would take effect. Contacted by the WSJ, Netflix declined to comment.
The increase would only come after the formal end of the Hollywood actors’ and screenwriters’ strikes. The former are under negotiation, while the latter are expected to vote on a proposed deal with TV and film studios.
Basic ad-free plan has been discontinued in the US
The Standard with Ads plan is the cheapest in Netflix’s portfolio. In the US, the monthly price is $6.99.
The package offers simultaneous two-screen playback and 1080p resolution, but it doesn’t support extra subscribers or downloads — and, of course, it has advertising in movies and series.
It has fewer features, such as 720p resolution and single-screen playback, but it is ad-free. In the U.S., this option has been discontinued.
Competitors raised prices and Netflix turned a profit
As the Wall Street Journal notes, in the US, major streaming platforms have raised the prices of their ad-free plans by about 25%.
While competitors have raised prices, Netflix has opted for another strategy: fighting password sharing. Since May, users have been required to set a primary residence, and people outside of that location can only access the service if they pay an extra fee.
Although unpopular, the move seems to have helped. With the extra charge, the ad-supported plan, and the mass layoffs, the company had an increase of 5.9 million subscribers and a profit of $1.5 billion in the second quarter of 2023.
