Netflix Is Rumored To Be Planning Another Price Increase After The SAG-AFTRA Strike Ends

After the Hollywood actors strike ends, Netflix reportedly wants to boost the price of its ad-free subscription tier.

According to The Wall Street Journal, the streaming service intends to raise fees globally, but the changes will be felt first in the United States and Canada. It’s unknown how much Netflix will charge consumers or when the new tariffs will go into effect at this time.

SAG-AFTRA and the Alliance of Motion Picture and Television Producers resumed talks regarding a prospective agreement Monday. After their contract expired in July, guild members went on strike. Guild members’ demands include increased compensation, increased payments to pension and healthcare funds, and revised residuals members receive from streaming service revenue. The union also wants modifications to the self-taping audition procedure, as well as protection against the use of artificial intelligence, as do writers.

SAG-AFTRA joined Hollywood writers on the picket line, who have since reached an agreement with the AMPTP, and brought the entertainment sector to a halt. With both unions on strike, the 2023-2024 television season appeared doomed. The financial impact of the deadlock is beginning to be felt by studios.

Streamers like Netflix are dealing with growing inflation rates and competition from other providers, in addition to the potential financial consequences of the strikes. As a result of these considerations, streaming services are charging customers extra for access. The Wall Street Journal reports that the cost of major ad-free services has risen by around 25% in the last year. As a result, viewers have become more price-conscious and are either canceling subscriptions, downgrading to an ad-supported tier, or switching to free ad-supported content platforms.

Netflix increased the subscription rate for its Standard plan to $15.49 per month in January, a $1.50 increase. The Premium plan on the streaming app increased by $2 to $19.99 per month for US subscribers, while the Basic plan increased by $1 to $9.99 per month. Netflix unveiled plans for a premium password-sharing subscription the same month in an effort to discourage consumers from sharing accounts with non-household members. In July, Variety claimed that Netflix was “more than a year out” from another price rise in the United States following its password-sharing crackdown.

After the streaming behemoth revealed the account-sharing limitations in June, it saw a surge in signups. That informs us that another price increase is unlikely to deter subscribers.

Netflix Is Rumored To Be Planning Another Price Increase After The SAG-AFTRA Strike Ends

After the Hollywood actors strike ends, Netflix reportedly wants to boost the price of its ad-free subscription tier.

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