Netflix is in the process of considering a price hike for its ad-free streaming service, a strategic move set to be implemented once the ongoing Hollywood actors’ strike concludes, as reported by the Wall Street Journal.
This announcement had a notable impact on the market, causing a surge of more than 3% in Netflix’s stock value.
Here are all the details about the new development at Netflix!
Netflix To Increase Subscription Rates After Hollywood Strike (SAG-AFTRA)
The streaming giant is actively engaged in discussions about adjusting prices across various international markets.
The primary focus for the initial rollout of the price increase is expected to be the United States and Canada, according to insider information cited in the WSJ report.
However, the specific details regarding the extent of the price increase and the exact date for its implementation remain shrouded in uncertainty. The report highlighted that Netflix has not yet disclosed the precise magnitude of the potential price adjustments or the timeline for when these new rates will come into effect. In response to inquiries about this matter, Netflix opted to refrain from making an official comment.
Concurrently, negotiations and discussions between the Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA) actors’ union and the Alliance of Motion Picture and Television Producers (AMPTP), representing the studios, are ongoing. The next scheduled meeting between the parties is set for Wednesday, underlining the continued efforts to resolve the issues raised by the actors’ strike.
Netflix Reduced Subscription Plans in February in Specific Countries
In a related development, negotiations between the writers’ union and the AMPTP achieved a tentative agreement in the previous week, following five months of protracted and challenging discussions.
Earlier this year in February, Netflix had implemented a reduction in subscription plan prices in specific countries. Concurrently, the company revealed an initiative to curb password sharing among its subscribers. This initiative was initially introduced in over 100 countries in May, forming part of Netflix’s comprehensive strategy to optimize its subscription models and address the challenges prevalent in the competitive streaming industry.
