![]() ![]() If Netflix raises subscription prices $1 a month for those subscribers, they yield new revenue of $906.84 million, or about $900 million more than the contract increase will cost them. ![]() Looking at the UCAN market alone – US, Canada and Australia – Netflix had 75.57 million subscribers as of June 30, 2023. That seems hardly worthy of yet another price increase. Two percent of $31.6 billion is about $6.3 million, and WGA estimates compensation to be less than that figure. Could Netflix have anticipated subscription price increases? Insider TakeĪccording to Netflix’s annual 10K filing with the Securities and Exchange Commission, in 2022, Netflix reported $31.6 billion in revenue, including $31.5 billion in streaming revenue and $146 million in DVD revenue. However, because productions are on hold, Netflix may be hesitant to raise prices because subscribers may not be able to justify paying more when they aren’t getting new content.Īt the end of July, Neumann made his comment about not raising pricing, but the writers’ strike because began off on May 2 and the actors’ strike started July 14. ![]() It is likely that a renegotiated contract with actors may yield similar increases, and Netflix could be raising prices to compensate for the rising costs of content. The WGA estimates the new contract will equate to less than 0.2% of Netflix’s annual revenue. For example, high-budget films will yield 18% more in compensation and a 26% increase in compensation for residuals. Netflix will have to pay writers a minimum amount of compensation. The Verge reports that WGA’s new contract requires that streaming services like Netflix will have to share their streaming data to see how their content performs. As always we offer a range of plans so members can pick a price that works for their budget.” Source: Netflix Why now? We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. ![]() In January 2022, a Netflix spokesperson said, “We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. **Trying to crack down on password sharing, Netflix added the option for non-household members to subscribe for an additional $7.99 per person. *The ad-supported standard plan is not available through all third-party billing partners and packages. Netflix’s current plans and pricing are as follows, according to Netflix’s Plans & Pricing page. Since then, Netflix has axed the basic plan. At the time, Netflix’s basic plan increased $1.00 to $9.99 a month, the standard plan increased $1.50 to $15.49 a month, and the 4K plan increased $2.00 to $19.99 a month. The streaming giant last raised its subscription prices in January 2022, their sixth price increase since 2014. “We’re now more than a year out from any price adjustments in our big revenue countries,” Neumann said. This subscription price increase is in direct contrast to chief financial officer Spender Neumann’s comments on Netflix’s second-quarter earnings call in July. The strike for the Writers Guild of America (WGA) has concluded, but Hollywood actors remain on strike. Though an exact timeframe was not given, the price hike will reportedly happen a “few months” after the conclusion of the Hollywood actors’ strike. Variety says the price increases will impact ad-free plans, but not the ad-supported plan. Netflix will raise subscription prices in the US and Canada first, according to a report by the Wall Street Journal and an unnamed source, but Netflix did not say how much they would increase. Streaming subscription service Netflix is planning to raise prices again, the second time in less than two years. ![]()
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