The popular streaming platform Netflix plans to increase the prices of its plans shortly after the prolonged actors’ strike in Hollywood ends, according to the Wall Street Journal.
Although still Specific details and exact dates have not been released. Upon its implementation, it is expected that this measure will initially affect the markets of the United States and Canada, and then spread globally.
In recent times, the company has been experimenting with various strategies to generate greater profits and maintain its position in the streaming market, where competition is increasingly fierce.
Having already exhausted the impact of their new cheap plan with ads (and without having yet universalized their Canadian experiment of withdrawing the basic plan without ads), in this case they seem determined to bet on a new price increase whose magnitude is unknown.
The announcement of the imminent price increase by the WSJ has generated a 3% increase in the company’s shares
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The impact of the strike(s)
The parallel strikes of actors and screenwriters have been a central topic of debate in the entertainment industry in recent months. However, the end of the writers’ strike after reaching an agreement last week gives rise to the optimism of those who want to see an imminent agreement between the SAG-AFTRA interpreters union and the Alliance of Film and Television Producers (AMPTP).
The business of Netflix (and its rivals in the movie streaming industry) will be affected by the agreement reached between producers and screenwriters: According to the new agreement, Netflix, Disney Plus, Hulu and the rest of the platforms will have to start sharing viewing data with the writers’ union, which will allow them to have reliable information on the performance of the productions, ending the current opacity.
The agreement also grants scriptwriters of streaming movies and series an 18% increase in their minimum compensation in the case of high-budget productions. However, according to WGA calculations, The cost of this agreement will amount to only 0.2% of Netflix’s annual revenue.
This imminent price increase would come about a year after the company began implementing measures to block account sharing (or apply additional costs to maintain it) in most of its markets, and two years after its last major global rate hikewhich established the prices that platform users enjoy today. In the case of SpainSpecifically, they are the following:
- Basic with ads (5.49 euros per month)
- Essential (7.99 euros per month)
- Standard (12.99 euros per month)
- Premium (17.99 euros per month)
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