Actor Strike has Prompted Netflix to Increase Costs for No Ads Tier
According to a report, Netflix plans to raise prices of their streaming plans without advertisements “a few months” following the settlement of SAG-AFTRA actors strike. By: Dylan Low
The popular streaming company is discussing to increase prices in several markets globally with costs first expected to hike in US and Canada. There has been no further information on Netflix’s new streaming prices and date the new plans apply. Their most recent price increase was in the first half of 2022.
For the US, Netflix’s regular streaming plan consisting of two streams and no ads, is priced at $15.49/month, while its premium tier with four streams costs $19.99/month. As Netflix recently removed their basic tier with no ads in the US and other markets, they are calling for consumers to purchase the $6.99/month advertisement plan or higher-priced plans. The basic plan had cost $9.99/month.
In July this year, Netflix CFO Spence Neumann mentioned to investors the platform was “more than a year out” from increasing prices in prominent markets such as the US. Netflix has “largely paused” price hikes after the addition of their paid sharing programme in May, their attempt to monetise password sharing users, clarified by Neumann in their second-quarter earnings interview.
“Most of our revenue growth this year is from growth in volume, through new paid memberships. And that’s largely driven by our paid-sharing rollout,” he added. “It is our primary revenue accelerator in the year.”
Netflix’s competitor streaming services have also hiked their prices in the past few months, with some being initially underpriced to attract higher subscriptions. Disney will also be increasing the cost for their premium tiers of Disney+, Hulu and ESPN+, on October 12th.
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