Netflix Might Be Forced To Raise Prices (Again) After Hollywood Strike
Hollywood writers ended a five-month strike against studios in late September on a new labor deal. Although the contract is still in the finalization process, The Wall Street Journal has reported that the world's biggest streaming platform plans to increase prices once more.
WSJ cited people familiar with the matter that said Netflix "is discussing raising prices in several markets globally, but will likely begin with the US and Canada." They said the price increase or when it will take effect is still unknown.
News of further pay hikes comes after eastern and western branches of the Writers Guild of America accepted a new labor contract with the Alliance of Motion Picture and Television Producers last month. The contract includes higher pay, more benefits, and a pledge by the studios not to replace writers with artificial intelligence. Meanwhile, talks between actors union SAG-AFTRA and studios are still ongoing.
Increasing labor costs for actors and writers is likely the main driver forcing Netflix to raise streaming prices again. WSJ shows that 'streamflation' has been a recent phenomenon across all streaming platforms.
"The company plans to wait until the dual Hollywood writer and actor strikes end before increasing prices. The Writers Guild of America announced a tentative agreement with studios last week and the Screen Actors Guild, which went on strike in July, restarted negotiations with Hollywood studios this week," WSJ noted.
To offset the higher cost of doing business, Amazon Prime plans to place "limited advertisements" in TV shows and movies unless customers pay an extra monthly fee.
Some consumers have had enough with 'streamflation' and canceled Disney+ and Hulu services ahead of new price hikes slated for Oct. 12.
Streaming platforms have produced an abundance of shows over the years, causing consumers to develop an addiction problem, commonly known as 'binge-watching'.
If consumers don't like higher streaming costs because of the union's - well, you're out of luck. Wait until Detroit's Big Three agree on a deal with the United Autoworkers Union -- this will only force automakers to increase prices for new vehicles.
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