According to reports, Netflix plans to raise its prices once the current Hollywood actors' strike is over.
According to the source, the price rise would first become effective in the US and Canada before moving elsewhere.
As soon as the current Hollywood actor strikes conclude, Netflix is apparently aiming to increase the cost of its membership services. The streamer will increase the cost of its ad-free plans a few months before to a global rollout, starting with the US and Canada, according to The Wall Street Journal. The corporation hasn’t responded to the alleged rise, but based on the previous occurrence, which occurred in January 2022, we may anticipate a $1 to $2 (about Rs. 83 to Rs. 166) increase for a monthly plan. Prior to that, Netflix also unveiled a less expensive, advertisement-supported plan, which costs $6.99 (roughly Rs. 582), but is still not available in India.
In contrast, Netflix decided to increase its membership count by tightening down on password sharing among its users, while other foreign streaming services like Max and Disney+ increased their pricing to stop financial losses. The strategy appears to have been successful as of July, when the streamer announced an increase of 6 million new customers, bringing the total to 238 million. According to the WSJ article, major streaming platforms’ prices have increased by 25% in order to turn a profit and attract more budget-conscious clients to their low-cost ad-supported plans. It’s hardly unexpected that the corporation is attempting to match the pricing points established by its rivals, with Disney+ commanding the top spot in the US at $13.99 (about Rs. 1,165).As of right now, the ad-free Standard tier costs $15.49 (about Rs. 1,289) per month in the US, while the Premium plan is set at $19.99 (roughly Rs. 1,664) per month and allows you to watch content on up to four screens simultaneously. It’s unclear when the new fees will be implemented.
The Writers’ Guild of America (WGA) ultimately called off its 148-day strike against major Hollywood studios last week in an effort to obtain fair compensation and combat the unchecked use of artificial intelligence (AI) in screenwriting. The WGA has now mandated that all of these studios, including the aforementioned Netflix and other significant streaming services, disclose streaming data with them. This data, especially the hours streamed, will allow writers and performers to gauge the success of a film or television programme and receive residuals on it. Although it is comparable to TV broadcasts, the introduction of internet streaming made it such that employees didn’t receive any more compensation beyond the initial payment. While on strike, the actors’ union SAG-AFTRA is attempting to reach a fair agreement with the studios. In April, Ted Sarandos, the CEO of Netflix, asserted that in the case of a strike, the streaming company was “better prepared than most” studios. Because of its propensity to prepare releases well before they are made public, its extensive slate of material kept interruptions to a minimal. Given that there isn’t much promise of new material beyond what they have previously presented during their TUDUM events, it seems sense for Netflix to wait till the strikes are over before they raise their fees.