BNR – During discussions surrounding the Hollywood actors’ strike, Netflix revealed plans to increase the cost of its ad-free service. The news is according to a recent revelation by the Wall Street Journal (WSJ).
This announcement led to a surge of over 3% in the streaming company’s shares.
Negotiations regarding the price hike are underway globally. However, sources suggest that the adjustments are likely to commence in the United States and Canada initially.
The specific scale of the price rises and the exact time for its application is still unknown at the moment. Netflix did not make any comments or remarks on the WSJ report.
However, the company is closely monitoring the talks between the SAG-AFTRA actors’ union and the Alliance of Motion Picture and Television Producers (AMPTP).
Netflix Adapts to Market
Their upcoming meeting is scheduled for Wednesday. Last week, the writers’ union reached a tentative agreement with the AMPTP after five months of unsuccessful negotiations.
Earlier this year, in February, Netflix reduced subscription plan prices in select countries.
Simultaneously, it revealed a strategy to combat password sharing among subscribers, a move implemented in over 100 countries by May.
The streaming giant’s decision to increase its ad-free service prices coincides with the ever-evolving field of streaming platforms.
Indeed, this advancement reflects the industry’s response to ongoing labour negotiations and market demands.