Stream or Scream? | Netflix Mulls Price Hike Post Hollywood Strikes
$Netflix(NFLX)$ is reportedly considering raising the prices of its ad-free streaming service following the conclusion of the ongoing Hollywood actors strike, as reported by the Wall Street Journal. While specific details of the price increase have yet to be disclosed, discussions are expected to take place in the U.S. and Canada.
Price Increase Plans Amidst Hollywood Strikes
This potential price hike follows a broader trend in the streaming industry, where major ad-free services have increased their prices by around 25% in the past year. This move is aimed at improving profitability and encouraging users to switch to cheaper ad-supported plans.
Interestingly, Netflix has been one of the few major streaming platforms that did not raise its prices over the past year. Instead, the company focused on increasing revenue by tackling password sharing.
Strike signs outside Disney Studios in Burbank, California, U.S
The decision to raise prices is likely a response to the rising costs associated with labor agreements reached during the ongoing Hollywood strikes. The recent tentative agreement between the Writers Guild of America and studios, along with resumed negotiations with the Screen Actors Guild (which went on strike in July), are likely driving this strategic move by Netflix.
The timing of the price increase is expected to coincide with the resolution of the strikes and is part of a broader industry trend to manage increased talent costs resulting from these labor agreements.
As an investor or viewer, it's essential to consider the potential implications of this price hike. While it may contribute to higher revenue for Netflix, it could also prompt subscribers to reevaluate their streaming options.
NFLX Daily Chart
Now, I'm curious to hear from you. Do you have a Netflix subscription? How do you feel about potential price increases for streaming services?
Share your thoughts and experiences in the comments below.
Disclaimer: My views and insights are provided for informational purposes only. I do not offer financial or investment advice. It’s essential to conduct your research before making any financial decisions. The volatile nature of financial markets necessitates caution and due diligence. [Observation]
$Walt Disney(DIS)$ $Apple(AAPL)$ $Amazon.com(AMZN)$ $Roku Inc(ROKU)$
Netflix Subscription(Single choice)Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Shorts are just in control here. With this surprising news on price increases, and the stock not able to hold any gains, is def not a good sign. I’m long and do believe in the company and the metrics, but right now bears are winning this tug of war.
These crooks are talking about raising the prices again! Let's see how many subscribers they will lose.
Truly feel bad if anyone bought . This is now clearly overvalued, until a real catalyst emerges.
at some point, they will be more expensive than cable
They don’t have enough good shows to raise prices.
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?