Osandu, Angel
Baltimore Watchdog Staff Writer
Netflix plans to increase subscription prices following the end of Writers’ Strike and the updating of writer’s contracts.
The streaming company launched its ad-supported plan in November of last year. The price is currently $6.99, cheaper than competitors like Hulu, whose ad plan is $7.99 monthly.
Despite its ad plan being relatively lower than its competitors, Netflix’s ad-free plan is twice the price, starting at $15.49. The company plans to nudge customers into switching to their lower plan to help generate revenue faster.
While this can be potentially good for business, customers are still determining whether they can afford the new price.
“$15 a month is too much,” says Yanick Anyangwe, a senior at Towson University. “I’m not sure what I’ll do if they keep increasing the price.”
According to data from The Guardian, Netflix has also been cracking down on password sharing outside households, which has increased their new subscribers by 8.8 million. Many are using the ad-supported plan, accounting for 30% of new users—providing newer revenue for the profitable major streamer.
The password crackdown can create issues for students like Yanick, who live on campus and are technically out of the primary account household. It may also impact their choice to use the service if they have to create their own subscription.
“The crackdown is taking away one of my few sources of entertainment just because I’m in college,” says Anyangwe. “If they take away my account, I won’t be making another.”
Although some people have stopped using the streaming service, the proportion of new subscribers and those who pay extra to share their account outside households outweigh the latter.
Netflix’s recent subscription updates are a response to the SAG-AFTRA’s writers’ strike—where writers and actors advocated for a more suitable wage. In doing so, they halted the production of many ongoing shows. As Netflix and the union come to an agreement, and contracts are being signed, the workers will soon receive financial and health compensation, improved lengths of employment, and prevents the use of AI to reduce or eliminate writer jobs and salary, etc.
As production begins to pick back up and workers return to their jobs, Netflix will continue raising their prices.
“Netflix needs to pay the workers directly,” says Anyangwe. “The consumer shouldn’t have to suffer at the expense of these money-hungry corporations.”
As more information about Netflix’s plan to fund the writer’s agreement, users are left to consider if the benefits outweigh the expense.
Resources:
https://www.theguardian.com/media/2023/oct/18/netflix-password-sharing-crackdown-subscribers
https://www.cnbc.com/2023/10/18/netflix-nflx-earnings-q3-2023.html
https://www.vox.com/culture/2023/9/24/23888673/wga-strike-end-sag-aftra-contract