According to a source, in order to make up for the money lost in the Hollywood actor strike, Netflix plans to boost the price of its ad-free subscription. Both the Standard and Premium ad-free plans currently cost $15.49 and $19.99 per month, respectively.
In July, a union representing more than 15,000 TV and movie performers went on strike to press streaming providers for higher salaries and residuals.
And Netflix has taken a hit as a result of the postponement of show releases.
According to a report, the United States and Canada will likely see the rise in price first.
After failing to negotiate a settlement involving the Alliance of Motion Picture and Television Producers over concerns about the use of artificial intelligence, the union representing approximately 160,000 actors, the Screen Actors Guild-American Federation of Television and Radio Artists, staged a strike.
Over 40 movies and TV episodes on Netflix have been delayed because of the strike. Customers of the streaming service seem to be on the hook for losses incurred by the company.
According to Netflix, Customers on the premium or standard plan may give another person access to their account for $8 per month. Netflix has guaranteed that all members of the same household may watch shows and movies wherever they are without disclosing how it verifies the identities or accounts of its subscribers.
The long-awaited change has been hanging over the US market since 2021, when Netflix said it would take action to stop lost profits of $6 billion per year due to password sharing.
However, its most significant loss of customers in over a decade occurred during a year of weak subscription growth. Netflix reported its first annual subscriber decline in almost a decade in 2022, with a drop of 200,000 users in the company’s client base during the first quarter alone.
Over the last 12 months, price hikes have been the norm for streaming services. In 2022, both Hulu and Disney+ increased their monthly membership fees. This year has already seen price rises from Paramount+, Max, and Peacock.