While specific details of the price increase, including the amount and timing, have not been disclosed, discussions are expected to begin in the U.S. and Canada. The decision to raise prices is likely a response to the rising costs associated with labor agreements reached during the ongoing Hollywood strikes. Netflix's move to raise prices is expected to occur once the strikes have been resolved, and it is part of a broader industry trend aimed at managing increased talent costs resulting from these labor agreements. "While we already expected a price increase sometime in 2024, based off comments from 2Q earnings, a 4Q hike would be sooner than expected," Oppenheimer analysts commented. "The price increase should increase ARM (rev/sub), either driving more subs to higher ARM ad-tier relative to ad-free Standard plan, or by increasing ad-free ARM.

Source: Wall Street Journal October 04, 2023 09:54 UTC