Netflix considers price hike for ad-free plans post hollywood strike

LOS ANGELES: Streaming giant Netflix is said to be mulling over price increases for its ad-free subscription plans, with an announcement expected after the resolution of the ongoing Hollywood actors’ strike, according to sources cited by The Wall Street Journal.

The reported price adjustments are anticipated to predominantly affect Netflix’s ad-free offerings, with initial impact likely to be felt in the United States and Canada.

Sources familiar with the matter have revealed that discussions are underway regarding price hikes across several global markets, with a tentative rollout commencing in the US and Canada. The exact magnitude of the price increases and their effective dates remain undisclosed at this stage.

The actors’ strike, initiated by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) in July, forms part of a recurring pattern of labour disputes in the entertainment industry.

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However, promising negotiations between SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP) suggest a potential resolution in the near future. The development follows a similar settlement reached between the Writers Guild of America and AMPTP, ending their strike on September 27 after launching it in May.

Although the dual strikes have significantly disrupted movie and TV production throughout the year, major streaming platforms have undergone strategic shifts. Netflix, despite not having raised its prices since January 2022, is now reportedly considering adjustments.

In contrast, Disney+ recently implemented a price increase, and Amazon Prime Video is poised to charge an additional $3 per month for an ad-free experience. Notably, Netflix has initiated measures such as password sharing crackdown and the discontinuation of its Basic ad-free plan in the US and the UK.

The potential increase in pricing for Netflix’s ad-free plans is expected to make its $6.99/month ad-supported plan even more enticing to consumers. In a shareholder letter earlier this year, Netflix acknowledged that its ad-supported plans were generating more revenue compared to its ad-free counterparts, reflecting evolving consumer preferences in the streaming landscape.