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Netflix is planning a price increase to its subscription fees in the wake of the Writers Guild of America strike deal.
“The streaming service is discussing raising prices in several markets globally, but will likely begin with the U.S. and Canada, according to people familiar with the matter. It couldn’t be learned how much Netflix will raise prices by or when exactly the new prices will take effect,” the Wall Street Journal report said.
In February, Netflix decreased the subscription prices in some countries, but at the same time planned to crack down on password sharing. This was rolled out in May to over 100 countries. It also stopped offering its basic ad-free plan in the U.K. and U.S.
While the WGA has reached a deal with the studios, the SAG-AFTRA actors' union is set to meet with the Alliance of Motion Picture and Television Producers on Wednesday for their own talks, according to Reuters.
While the strike of the writers and actors unions significantly impacted the production of this year's movies and television shows, streaming services such as Amazon Prime Video and Disney+ have been making strategic moves. Although Netflix hasn't increased its prices since January 2022, Disney+ did as recently as August and Amazon Prime will start charging $3 extra for an ad-free experience in 2024.
Netflix's price increase to its ad-free plans will most likely help the company's $6.99 per month ad-supported subscription be more attractive to consumers. However, in a letter to shareholders published early this year, the streaming service acknowledged that it was making more money from the ad-supported plans compared to the ad-free ones.
