Netflix is gearing up to raise the prices of its ad-free streaming service once the ongoing Hollywood actors’ strike comes to an end, as reported by the Wall Street Journal. Following this news, the company’s shares saw a surge of more than 3%.
According to sources familiar with the matter cited by the WSJ, Netflix is in discussions regarding price increases in multiple global markets. However, the initial adjustments are likely to be implemented in the United States and Canada. The exact extent of the price increase and the effective date of these changes remain undisclosed at this time. Netflix has refrained from commenting on the report.
Meanwhile, negotiations between the SAG-AFTRA actors’ union and the Alliance of Motion Picture and Television Producers (AMPTP), representing the studios, are still ongoing. Their next meeting is scheduled for Wednesday.
In contrast, the writers’ union reached a tentative agreement with the AMPTP last week, concluding five months of challenging negotiations.
It’s noteworthy that Netflix had reduced the prices of its subscription plans in select countries back in February. In the same month, the company announced plans to crack down on password sharing among subscribers, a measure that was subsequently rolled out in more than 100 countries in May.
