Netflix Eyes Price Hike in Canada Following Hollywood Strikes: Report
Netflix is considering raising the price of its ad-free streaming service in several global markets, with a focus on the U.S. and Canada first, according to sources familiar with the matter, reports the Wall Street Journal.
The exact amount of the price increase and its implementation date have not been disclosed. This move comes after a year in which the cost of major ad-free streaming services has risen by about 25%.
The company has opted to wait until the ongoing Hollywood writers and actors strikes conclude before implementing the new prices. The Writers Guild of America recently announced a tentative agreement with studios, and the Screen Actors Guild, which went on strike in July, has restarted negotiations this week.
Netflix has been unique among its peers for not raising prices over the past year. Instead, the company has focused on boosting revenue by cracking down on password sharing.
Back in October 2022, Netflix introduced its Basic with Ads tier in Canada, priced at $5.99 per month. Netflix Basic is $9.99 CAD, Standard is at $16.49 CAD and Premium is at $20.99 CAD.
The potential price hike in Canada and the U.S. is part of a broader trend in the streaming industry. Companies are exploring new pricing tiers centred around exclusive programming and are increasingly focusing on more lucrative ad-supported plans.
Disney, for instance, is discussing launching a new live sports tier for markets outside of the U.S., and Apple TV+ is offering Major League Soccer’s Season Pass for a monthly fee. Disney+ also has a price increase coming for its top tier this fall.
Streaming prices continue to creep up like we’re moving back to cable TV it seems. Are you currently subscribed to Netflix Basic with Ads? Are you ready for a price increase?