It seems that raising prices has become a common practice for Netflix. While previous price hikes sparked many protests among subscribers, the streaming company wants to hit its subscribers with another increase in plan prices. According to The Verge (via WSJ), Netflix would implement another price hike in the coming weeks.
In 2022, Netflix drastically changed all of its plans, including raising the ad-free Standard tier cost to $15.49 a month. The Netflix Premium plan also increased to $19.99 monthly, while an ad-supported version was rolled out at $6.99.
The company later decided to ditch its Basic plan for new subscribers. Additionally, it now charges users $7.99 monthly for sharing password with others. A new round of price hikes awaits subscribers in 2023.
Netflix could soon raise its subscription prices again
As the outlet reported, the change will be implemented in “several markets globally.” The US and Canada are also on the list. Netflix has yet to stay tight-lipped about how much the prices would increase.
While the exact schedule for implementing the changes has not yet been announced, the change would likely happen after the Hollywood actor’s strike ends. When there’s no new show in the market due to strikes, hitting subscribers with a price hike doesn’t seem like a calculated act. That’s why Netflix waits for actors and crew to return to work.
Last week, the Writers Guild of America (WGA) ended the strike and started to vote on a new contract with Hollywood studios, including Netflix. Under the new contract, major Hollywood studios must share their data with WGA so writers can see how their content performs on different streaming platforms.
Additionally, writer’s compensation for high-budget films increases by 18%, and there’s another 26% increase in residuals. WGA argues the cost of the new contract equals only 0.2% of Netflix’s annual revenue.
While the streaming market is booming and new players are entering the market, implementing price hikes seems inevitable for streaming companies. Besides Netflix, Disney Plus and Hulu have recently announced changes in their plan’s costs that take effect on October 12.