Netflix is reportedly preparing to increase the cost of its ad-free
service once the ongoing Hollywood actors' strike concludes, according to the
Wall Street Journal, causing a more than 3% surge in the company's shares.
The streaming giant is engaged in discussions about raising prices in several
global markets, with the initial increase likely to roll out in the United
States and Canada, as per sources familiar with the matter. The report does
not specify the exact amount of the price hike or the precise date when the
new pricing will take effect.
Netflix has chosen not to comment on the report.
Negotiations between the SAG-AFTRA actors' union and the Alliance of Motion Picture and Television Producers (AMPTP), representing studios, are currently ongoing, with their next meeting scheduled for Wednesday. Notably, the writers' union reached a tentative agreement with the AMPTP last week after five months of failed negotiations.
In February, Netflix lowered subscription plan prices in certain countries. During the same month, the company announced measures to address password sharing among subscribers, which were subsequently implemented in over 100 countries in May.
