Apparently not content with one price increase (maybe two) in recent years, Netflix will reportedly increase the cost of its streaming service across the board again.
The Wall Street Journal (WSJ) writes this in a new report the company is “currently discussing increasing prices in several markets worldwide,” with the rollout likely to begin in the US and Canada. It is unknown how much the bump will amount to, and The Wall Street Journal does not know when exactly it will start. Netflix remains tight-lipped as it has declined multiple inquiries from media outlets. However, the WSJ says the streaming platform plans to increase fees “a few months after the ongoing Hollywood actors’ strike ends.”
Imminent rise
As of this writing, SAG-AFTRA (Screen Actors Guild – American Federation of Television and Radio Artists) is still on strike, although this may end soon. The guild recently met with the heads of Hollywood’s four major production studios as both sides try to make a deal. Assuming the protest ends sooner than expected, this could trigger Netflix’s price hike sometime in early 2024 as the platform continues to boost revenues.
Over the past year and a half, Netflix has implemented multiple strategies to make money. It all started in March 2022 when the platform caused prices to rise for all its subscription levels. Then we saw the implementation of the ad-supported layerthe controversial crackdown on password sharing and the death of the Basic plan in certain countries.
The latter could be considered a second increase, as it forced users to get either the more expensive Standard tier or the Standard plan with ads to keep their service.
Analysis: The next guess
Why, we wonder, does Netflix implement a fourth strategy after the strike ends?
It’s possible that the company wanted to make another increase, but couldn’t find a good reason to justify it to its subscribers. One online theory we’ve seen floating around claims that Netflix will use the returning actors and writers from the WGA (Writers Guild of America) strike as justification for the raise. With all the new requirements and content, the platform may claim that it will have to collect more money from users to pay for everything. Although the This is evident from WGA’s calculations the updated “contract will be just 0.2 percent of Netflix’s annual revenue.”
Now the next question: will the coming surge be too much for subscribers? When the crackdown on password sharing began, online debates raged claiming, “This is the death of Netflix.” However, the opposite happened: the number of subscribers to the service grew by 236 percent. The gamble paid off for them – at least in the short term. In the long run it may be a different story. Rising costs could ultimately cause people to cancel their subscriptions en masse. Netflix could end up with egg on its face and realize it went too far.
We don’t know that, of course, but we’ll certainly keep an eye on things as they develop.
While we’ve got you, check out TechRadar’s list of the 39 best movies worth watching on Netflix in October 2023.