Another price hike is coming for one of the top streaming platforms in the world, Netflix, with a report centering on its plans to enact a higher monthly fee for its ad-free subscription tier. However, this would not yet come in the present, as Netflix is reportedly waiting for the WGA SAG-AFTRA strike to end, with expectations that this would delay it for a few months.
The price increase would center in North America (the United States and Canada) regions only, as per the sources.
Netflix to Increase Monthly Ad-Free Subscriptions Soon
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The Wall Street Journal's recent report claimed that insiders familiar with this change said Netflix will soon implement a price hike for its monthly ad-free subscription on the platform. Netflix's planned price hike will see as much as $2 increase to its current pricing, spread out to its two tiers.
The Standard plan would soon be available for $15.49 per month, coming from $14, increasing by $1.50. On the other hand, the Premium tier with 4K streaming would be available for $20 from its $18 price updated last July, seeing a $2 increase.
It seems that the ad-supported tier, Basic with Ads, will remain at $6.99 per month.
Ars Technica claimed that the ad-supported plan is seeing significant traction among the public now, with Netflix, Disney, and Warner Bros. all reporting higher revenue compared to ad-free plans.
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WGA, SAG-AFTRA Strike: Coming to an Agreement?
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The report claimed that Netflix's price hike would not come for months, and this is because it would take place after the WGA and SAG-AFTRA strike that is nearing its end.
WGA is now looking to vote on the tentative agreement with TV and movie studios, and the SAG-AFTRA is now negotiating with the concerned companies. It was noted that streaming platforms like Netflix will soon be required to share performance metrics with the writers, a way to increase their residuals.
Streaming Platforms Price Hikes
Prices on renowned streaming platforms in the world are increasing at significant hikes, and this was evident in the last few months when companies announced their new plans. Netflix's last price hike took place in July, with the company removing the $10 Basic tier, having only three plans including the Standard with Ads, Standard, and Premium that could set them as much as $19.99.
Another renowned streaming company, Disney, increased its plans by as much as $3 for both its platforms including Disney+ (now at $13.99 per month) and Hulu (now at $17.99 per month).
Earlier this year, Google's YouTube TV also increased the monthly subscription for users by as much as 12 percent or $8 per month, setting users by as much as $72.99 for the family account.
The WGA SAG-AFTRA strike is believed to be ending, especially as the Writers Guild of America is voting to sign a new agreement and the Screen Actors Guild is currently negotiating. Once this long strike ends in the country, reports believe that Netflix will make its move to reflect its new pricing that increases yet again this year, looking to increase its revenue.
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