Reports suggest that Netflix is in discussions about raising its prices in various global markets, starting with the U.S. and Canada.
While the exact price adjustments and implementation dates remain undisclosed, this potential move aligns with industry trends.
Over the past year, major ad-free streaming services have witnessed a roughly 25% increase in prices. Entertainment companies are seeking profitability for their streaming platforms while attracting cost-conscious customers to their more economical ad-supported plans.
Warner Bros. Discovery recently announced an increase in the monthly cost of its ad-free Discovery+ streaming service, from $6.99 to $8.99, while the ad-supported version remains at $4.99 per month.
Streaming providers are also exploring the creation of new pricing tiers centered around exclusive content, including live sports, without alienating their core audiences.
Earlier this year, Netflix addressed password sharing by introducing an additional $7.99 monthly fee for sharing accounts with individuals outside one's household.
This potential price adjustment coincides with Hollywood's gradual return to work. The recent conclusion of the Writers Guild of America (WGA) strike and ongoing contract negotiations between major studios, including Netflix, and the WGA could reshape the streaming landscape.
Under the new WGA contract, streaming services like Netflix, Disney Plus, and Hulu will share streaming data with the guild, allowing writers to assess their content's performance.
Additionally, high-budget streaming films will see an 18% minimum compensation increase for writers and a 26% boost in residuals.
Notably, the WGA's new contract costs are estimated to represent just 0.2% of Netflix's annual revenue.
While Hollywood actors continue their strike, some productions remain on hold.
Netflix may be waiting for the strike's resolution before implementing price increases, anticipating a surge of new content to justify adjustments once both writers and actors are back to work.
In parallel news, Disney Plus is considering launching a new live sports tier outside the U.S., as price adjustments continue to ripple across the streaming landscape.