It seems like a joke, but it’s the reality of the audiovisual industry: increasing prices more and more… in exchange for nothing new or better. They prevent us from sharing accounts, don’t improve the content, and raise the fees. Everyone is doing it, and users don’t have many options other than to accept it or unsubscribe.
Netflix plans to increase the cost of its streaming service again, according to a report from The Wall Street Journal. Apparently, the company will implement the price hike “a few months” after the end of the Hollywood actors’ strike, which could happen in the coming weeks.
According to the WSJ, Netflix will raise prices in “several markets,” starting with the US and Canada. It is still unclear how much Netflix will raise the prices, and Netflix declined to comment.
Another price hike, and the count continues…
Netflix increased the prices for all its plans last year, raising the Standard plan without ads to $15.49 per month and the Premium plan to $19.99 per month. The company also introduced an ad-supported plan for $6.99 per month and later removed its ad-free Basic plan at $9.99 per month.
Earlier this year, Netflix cracked down on password sharing and started charging an extra $7.99 per month for sharing accounts with someone outside the household. The new price hike also comes as Hollywood is getting closer to returning to work.
According to the new contract signed with the union, Netflix, Disney Plus, Hulu, and other services will have to share streaming data with the WGA, allowing writers to know the performance of their content.
The contract also grants an 18% minimum increase in compensation for high-budget streaming movies to the content writers, along with a 26% increase in residuals.
According to WGA’s calculations, the cost of their new contract will account for only 0.2% of Netflix’s annual revenue. And it’s us, the users, who will have to pay for it.
In addition to the news about Netflix, the WSJ also reports that Disney Plus could launch a new live sports offering outside of the United States. Disney Plus is also not immune to price hikes, as the most recent one goes into effect later this month.