In a recent report, Netflix has revealed its intention to raise the prices of its streaming plans in the wake of the SAG-AFTRA actors’ strike, which is expected to be resolved in the coming months.
While specific details regarding the price increases have yet to be revealed, the streaming giant is said to be in talks about implementing these changes in several global markets, with initial increases expected in the United States and Canada. However, an official date for the price adjustments has not been confirmed.
The current pricing structure in the US offers a Standard plan with two streams and no ads for $15.49 per month, while the Premium tier, which allows four streams, costs $19.99 per month.
Earlier this year, Netflix removed its ad-free Basic tier, priced at $9.99 per month, in favor of promoting its $6.99 per month ad-supported plan and higher pricing tiers.
Netflix has previously stated that any price increases in major markets, such as the United States, were expected to take more than a year. The company had stopped those increases after introducing a payment sharing program in May 2023, aimed at monetizing users who share passwords. According to Netflix CFO Spence Neumann, this show has been the main driver of revenue growth for the year.
The news of Netflix’s impending price increase follows a trend in the streaming industry, where several other services have recently increased their prices to better reflect their offerings.
Disney, NBCUniversal, Paramount Global and Warner Bros. Discovery have announced price adjustments in response to changing market dynamics, as they seek to balance content quality and affordability for their subscribers.