Streaming Platforms to Raise Subscription Rates After Hollywood Strikes Conclude

Streaming platforms such as Netflix and Disney+ are looking to chase lost revenue after both platforms announced plans for a subscription price hike for their users.

Reports suggest that Netflix will increase their rates once the strike conducted by the Screen Actors Guild-American Federation of Television and Radio Artists against the Alliance of Motion Picture and Television Producers ends. Negotiators from the guild and the Hollywood alliance will resume talks for a new Minimum Basic Agreement this Wednesday.

Should Netflix go through with the price hike, the streaming platform joins its major competitors like Disney+, Hulu, Max and Apple TV+ in raising subscription prices for their services.

Price hike after Hollywood strike

According to a report by the Journal, the streaming giant will implement price hikes on their United States and Canada markets first, citing sources close to the matter. However, the report is unclear if Netflix's global market is set to follow, as well as a clear date for the implementation.

Netflix enjoyed an increase in its stock prices after the news broke, with shares adding exactly $3.09 from their initial $383.42 morning prices.

The announcement puts Netflix CFO Spencer Newmann's statement made last July. Newmann previously said in a second-quarter earnings call that Netflix will not be increasing their subscription prices for at least a year.

The supposed steady subscription prices were attributed to the successful suppression of multiple users sharing the password of a single account. The password-sharing prevention measures the streaming platform exercised increased subscriptions for Netflix significantly.

Netflix has not yet confirmed anything about the report.

Increasing streaming market

Meanwhile, Disney+ is looking into the possibility of streaming live sports to add revenue. The Journal reports that the platform is already in talks to include the service. Before the news broke out, Disney+ already had ESPN+ included in a bundle with Hulu and Disney+. ESPN+ is also offered by Disney+ as a standalone streaming service.

Warner Bros. Discovery announced similar plans earlier this year, with their streaming platform Max adding a live 'Bleacher Report' sports streaming service. Among the content to be streamed on the platform are games from the MLB, NHL, NBA and NCAA, as well as US soccer and golf. The sports streaming service is free for now and will cost $9.99 a month for potential subscribers.

Earlier this August, Disney+ and Hulu announced that the ad-free versions of the streaming platforms will increase their prices to $13.99 and $17.99 respectively, starting October 12. Potential subscribers can also avail of both streaming platforms in a bundled, ad-free version priced at $19.99. The versions with ads included remain at $7.99 each.

Apart from the price increase, Disney+ also notified users that password sharing among multiple users for a single account will be controlled. It will first roll out in Canada starting November 1, before its application in the US later this year.

This is Disney+ and Hulu's second price hike in under a year. However, the streaming platform's shares saw a decline in the broader market, giving up 1.7 per cent to $80.34.

October will see major streaming platforms apply price hikes to their services. Among them are Apple TV+, Max, Paramount Plus and Peacock.