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Netflix (NFLX) plans to raise subscription fees for its ad-free service just months after the current Hollywood actors' strike ends, becoming the latest company to join a string of recent price hikes by big U.S. streaming platforms.
The streaming service is in discussions to raise prices in several markets around the world, but is likely to start with the United States and Canada, according to people familiar with the matter. It was not immediately clear how much Netflix planned to raise prices or when the new prices would take effect. Netflix declined to comment.
Over the past year or so, fees for major ad-free streaming services have risen by about 25 percent as entertainment companies seek to make their streaming platforms profitable and steer price-sensitive users toward their cheaper and more profitable ad-based subscription plans.
Streaming companies are also starting to figure out how to build new subscription schemes with their own exclusive programming, such as live sports, without risking losing users to their core products.
The Walt Disney Company (DIS) is in discussions to launch a new Disney+ sports live broadcast in markets outside the United States, according to people familiar with the matter. Last month, Warner Bros. Discovery (WBD) said it would soon add live sports content to its Max streaming service, which interested users can watch for an extra $9.99 a month.
Apple TV+ is selling an MLS Season Pass for Major League Soccer, which can be purchased for $12.99 per month or $25 per season for those who subscribe to Apple TV+. Those who don't subscribe to Apple TV+ can buy it for $14.99 per month or $29 per season.
Netflix, which stands out from its peers for operating a profitable streaming business, is the only streaming giant that hasn't raised prices in the past year, instead focusing on boosting revenue by cracking down on password sharing. Netflix last raised prices in January 2022.
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