Netflix is reportedly laying down plans to change the pricing of its streaming service once more, following the trail of the Hollywood actors’ strike resolution, as indicated by a narrative from The Wall Street Journal. This price increase is anticipated to roll out a few months after the said strike’s cessation, which is foreseen to materialise in the ensuing weeks.
Pricing changes across the globe
The Wall Street Journal narrative unveils that the price alteration is set to be enacted in several global markets, kicking off with the US and Canada. However, the exact increment figure remains under wraps, with Netflix choosing to remain mum. It’s pertinent to recall that Netflix executed a price hike across all its plans the previous year, which saw the ad-free Standard plan landing at US$15.49 per month and the Premium tier at US$19.99 per month. Additionally, Netflix introduced a US$6.99 per month ad-supported tier and later bid farewell to its mid-tier US$9.99 per month basic ad-free plan.
Earlier in the year, Netflix tightened the noose on password sharing, introducing an additional charge of US$7.99 per month for sharing your account with individuals beyond your household. This recent price surge move is aligned with Hollywood’s stride towards resuming operations. A week ago, the Writers Guild of America (WGA) wrapped up its strike and initiated the voting process on a contract with significant Hollywood studios, Netflix included, which potentially bears the capability to pivot the streaming industry dynamics.
The ripple effect on the streaming realm
Under the new contract, streaming giants like Netflix, Disney Plus, and Hulu must disclose streaming data to the WGA, thereby granting writers a lens into the performance metrics of their content. This contract also ensures writers of streaming features are on the receiving end of a minimum compensation boost of 18 per cent for high-budget films and a sweetened deal of a 26 per cent increment in residuals. The WGA has deduced that the financial implication of this new contract will merely nick 0.2 per cent off Netflix’s annual revenue.
On the flip side, the Hollywood actors’ strike continues to rage, halting some productions. Netflix is biding its time till the curtain falls on the strike to roll out the new prices. Elevating costs amidst a content drought certainly doesn’t resonate as a tricky manoeuvre. When the script maestros and actors re-embark on their creative journeys, fresh shows and movies are expected to grace the screens, providing Netflix with solid ground to uphold the price hike.
Moreover, The Wall Street Journal has shed light on the likelihood of Disney Plus unveiling a new live sports tier beyond the US shores. Disney Plus isn’t new to the price augmentation arena either, with its latest increment slated to be activated later this month.
