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Netflix to implement price hike for its subscription plans

Netflix is contemplating a price increase amid a challenging content production landscape and growing competition in the streaming sector. The additional revenue from these potential hikes could aid in mitigating the financial repercussions of the strike and support the company's content creation.

Edited By: Saumya Nigam @snigam04 New Delhi Published on: October 04, 2023 22:37 IST
Netflix
Image Source : PIXABAY Netflix to implement price hike for its subscription plans

Netflix is reportedly considering yet another price increase for its streaming services, with the initial rollout planned for the United States and Canada. This move is intended to compensate for revenue losses incurred during the recent Hollywood strike, according to media reports.

The potential price hike is expected to be implemented a "few months" after the conclusion of the strike, which could happen in the coming weeks. The Wall Street Journal was the first to report this development, although the exact magnitude of the price increase remains unknown at this time.

The Hollywood strike, which began in July, saw over 15,000 television and film actors demanding higher compensation and residual payments from streaming services. This strike was initiated by the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA), a union representing approximately 160,000 actors. The strike was prompted by the failure to reach an agreement with the Alliance of Motion Picture and Television Producers regarding issues such as residuals and the use of artificial intelligence (AI) in content creation.

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his strike followed the lead of the Writers Guild of America (WGA), which had been on strike since May 2, highlighting the ongoing labour disputes within the entertainment industry.

Netflix previously increased the prices of its subscription plans last year, including raising the cost of its ad-free Standard tier to $15.49 per month and the Premium plan to $19.99 per month. Additionally, the company introduced a $6.99 per month ad-supported plan while discontinuing its $9.99 per month basic ad-free plan. Earlier this year, Netflix also intensified efforts to combat password sharing and began charging an additional $7.99 per month for sharing accounts with individuals outside of one's household.

The latest price hike considerations come as Netflix navigates a complex landscape of content production and increasing competition within the streaming industry. The revenue generated from these potential price increases may help the company offset the financial impacts of the strike and continue its ambitious content-creation efforts. However, the move will undoubtedly be met with scrutiny from subscribers who may be concerned about the rising costs of their streaming subscriptions.

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Inputs from IANS

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