Netflix Is Planning To Raise Prices. Again
Netflix is once again planning to increase its subscription prices following the end of a strike by actors, as reported by The Verge.
The American actors' guild (SAG-AFTRA) declared a strike on July 13, 2023, nearly two months after a similar strike was called by the Writers Guild. Both guilds were demanding higher rates, royalties, and protection of their work from the use of artificial intelligence.
Among the actors' demands was an increase in royalties from streaming platforms.
Netflix has raised subscription prices several times since its launch. Now, it's doing so with the ad-free subscription option.
The service is considering raising prices in multiple markets worldwide, but it's likely to begin with the United States and Canada.
Over the past year, the cost of ad-free subscriptions for major streaming services has increased by approximately 25%. Services are attempting to become profitable and encouraging cost-conscious customers to switch to the ad-free subscription tier.
The recent wave of price increases came after entertainment companies lost billions of dollars, investing heavily in content while keeping their service prices low in a race for rapid growth.
Major streaming platforms are also striving to attract subscribers through sports broadcasts. For instance, Disney+ is reportedly discussing the launch of a new sports subscription outside the US, Warner Bros. Discovery plans to add sports broadcasts to its Max service, and Apple TV+ offers a seasonal subscription for Major League Soccer (MLS) in the US.
It's worth noting that Netflix has reduced the subscription prices in Ukraine. The basic subscription has become cheaper, now priced at €4.99 (previously it cost €7.99).
As previously reported by The Gaze, Meta is also planning to introduce a paid subscription for Facebook and Instagram without ads for European users.
According to the plan presented to European regulators, a charge of approximately €10 per month is proposed for access to one account, with around €6 for each additional linked account. For mobile device subscriptions, the fee is expected to be set at €13 per month.