Netflix is Reportedly Planning Price Increases After Actors Strike Ends

Netflix is reportedly preparing to announce some price increases after the ongoing Hollywood actors strike comes to an end. The Wall Street Journal is reporting today that the price increases should only affect the company’s ad-free plans and that the US and Canada could be the first markets to be affected.

“The streaming service is discussing raising prices in several markets globally, but will likely begin with the U.S. and Canada, according to people familiar with the matter. It couldn’t be learned how much Netflix will raise prices by or when exactly the new prices will take effect,” the report says.

The SAG-AFTRA actor’s union strike began in July, and it’s part of a recurring series of labor disputes in Hollywood. However, the American actors’ union is currently in negotiations with the Alliance of Motion Picture and Television Producers (AMPTP), and the strike may end soon. The Writers Guild of America, which also went on strike back in May, recently reached an agreement with the AMPTP and ended its strike on September 27.

While this dual strike has significantly impacted the production of movies and TV shows this year, big streaming platforms have also been making some strategy changes. While Netflix hasn’t raised its prices since January 2022, Disney+ recently did it, while Amazon Prime Video will soon charge an extra $3/month for an ad-free experience. Netflix, however, did start cracking down on password sharing and discontinued its Basic ad-free plan in the US and the UK.

Netflix’s ad-free plans becoming more expensive will likely help to make the company’s $6.99/month ad-supported plan even more appealing to consumers. In a letter to shareholders published earlier this year, Netflix actually admitted that it was making more money from subscribers on its ad-supported plans compared to those on its ad-free plans.