Netflix is reportedly planning to raise the price of its ad-free subscription offer 19 months after its last hike.
Fans of Wednesday, Bridgerton, Squid Game and The Crown will have to fork out more to watch their fave shows as a result.
The streaming service could start charging customers extra as soon as the Hollywood actors’ strike concludes, reported the Wall Street Journal.
Studios recently reached a deal with disgruntled writers after five months of disruptive strikes, opening the door to a similar detente with thespians.
Netflix may begin by raising prices in the US and Canada but is ultimately targeting several countries worldwide.
The UK and Europe are the company’s biggest markets after North America. Netflix also charges more for its service in the west compared with other territories, and hence generates more income per customer. By contrast, in many developing markets, Netflix has offered discounts in an attempt to establish a local foothold.
If Netflix were to go ahead with the hike, it would be its third price rise in the UK. The service offers three subscription options, including Netflix with ads for £5 a month, Standard for £11 and Premium for £16.
Earlier this year, Netflix removed its £7 Basic plan, thereby forcing users to pay more to ditch ad breaks. Netflix’s most popular package, the Standard tier, originally cost £9 and its Premium plan cost £12.
Streamers are ramping up prices and preventing people from sharing their services at a time when Brits are already facing a financial squeeze due to persistent inflation.
Disney Plus is set to increase its subscription prices and clamp down on password sharing in November. Meanwhile, Amazon will start charging users a monthly fee to get rid of ads on Prime Video next year.
The hikes are designed to make streaming services profitable. Streaming is viewed as a money pit due to the high cost of churning out new shows and movies, and the ease with which people can cancel their subscriptions.
Netflix is the only profitable streaming service, but it is also the biggest spender on content. The company splurged around £13.8 billion on films and series in 2022, including high-budget originals such as blockbuster movies The Gray Man and Enola Holmes 2, hit miniseries Monster: The Jeffrey Dahmer Story, and returning shows like The Umbrella Academy and Stranger Things.
After years of unbridled growth, customers are harder to come by as the amount of viewing options has increased, as have prices.
To retain users, streamers have started to offer cheaper subscriptions with adverts. As part of its crackdown on password sharing, Netflix has allowed customers to pay to add extra accounts to their subscription.
Hollywood has also been hit hard by the long-running strikes. Warner Bros estimated the industrial action could cost it $500 million this year.
Netflix began life as a DVD postal rental service in the US 25 years ago before shifting to streaming in 2007.
