Netflix Considers Price Hike After Hollywood Actors Strike Ends
Netflix Inc (NFLX:US) is reportedly planning to raise the price of its streaming service once again, as revealed in a recent report by The Wall Street Journal on October 3. The timing of this price hike is expected to coincide with the conclusion of the Hollywood actors' strike, which may come to an end in the coming weeks. Following this announcement, the stock of the streaming service surged by over 3% yesterday.
According to the report, Netflix is considering increasing prices in several markets worldwide but is likely to initiate with the United States and Canada. The exact amount of the price increase and the specific date of implementation remain undisclosed as of now.
In response to inquiries regarding the report, Netflix has chosen not to comment on the matter.
It's worth noting that in February, the video streaming platform reduced its subscription prices in certain countries. In the same month, the company introduced measures to curb password sharing among subscribers. These measures were subsequently rolled out to over 100 countries in May.
The ongoing negotiations between the SAG-AFTRA actors’ union and the Alliance of Motion Picture and Television Producers (AMPTP) are crucial to this timeline, with the next discussion slated for Wednesday. Interestingly, after five grueling months of negotiations, the writers’ union recently managed to secure a tentative agreement with the AMPTP.
Furthermore, in July, the company discontinued its basic $9.99-a-month ad-free tier in the U.S. This move considerably widened the price difference between the $15.49 standard ad-free plan and the $6.99 ad-supported tier that was introduced in the previous November.
Several Congress members reported trades involving NFLX shares in recent months, including Rep.Josh Gottheimer's purchase of shares valued at between $1,000 - 15,000 in August. The stock is up more than 27.73% year-to-date.
