Just how much subscription prices are set to increase hasn’t yet come to light. However, they’d have absolutely no factual basis for doing so. From a PR point of view, it’d certainly be convenient for Netflix to lay the blame for the price increases at the door of the strikers. If the streaming service were to pass the screenwriters’ demands directly onto its customers, this would be equivalent to a surcharge of around 0.29 cents per subscription per year. Netflix currently boasts 238 million subscribers (website in German). News + Trends End of the strike in Hollywood? Writers' guild reaches agreement with studio bosses That’s 68 million of its 31.6-billion-dollar annual turnover, to be precise. At the beginning of the strike, the Guild calculated that its demands would cost Netflix just over 0.2 per cent of its 2022 annual revenue. Streaming services don’t have to communicate these numbers publicly, but at the very least, they have to reveal them to the Authors Guild. This revenue share will be calculated in proportion to the viewing figures of the show or film in question. A share in the annual revenue of streaming services.An increase in the minimum amount previously paid for high-budget films.Amongst the concessions won was a new, improved and above all well-deserved pay packet. Last week, the writers’ strike came to an end. Until recently, two of Hollywood’s three main unions were on strike: the Writers Guild and the Actors Guild. Could the Hollywood strikes really be to blame? The thing is, this excuse just doesn’t fly. The streaming giant might even have the audacity to blame Hollywood strikers. Rising production costs, the need to invest in new content – the usual mumbo jumbo. Even so, I already know how Netflix will justify the increases. In a letter to shareholders, Netflix said: “We’ve shown that with discipline and a focus on the long term, you can build a strong, sustainable streaming business.Basically, there’s no good reason for Netflix to raise prices again. The company forecast free cash flow of $6.5bn for the year, up from previous forecasts of $5bn, as it spent less on new films and TV shows because of the Hollywood strikes. Overall, revenues hit $8.5bn in the third quarter, while profits of $1.7bn were ahead of analysts’ expectations. Netflix also said it had seen strong growth in its ad-funded tier, which now accounts for roughly 30pc of new sign-ups. Yet the figures show the company has continued to grow its subscriber base despite the ban on password sharing. Netflix has shifted its focus from subscriber growth to profits as tough competition from the likes of Amazon and Disney, as well as the cost of living crisis, have prompted many consumers to cut back. They also highlighted the popularity of shows including Top Boy and Sex Education. Subscribers must now pay an additional £4.99 per month to share their account with another household. Netflix chiefs pinned the strong results on the company’s crackdown on password sharing. It comes after Netflix reported an 8.8m increase in customers in the third quarter – its strongest growth in years. The cost of its ad-supported and “standard” subscriptions will remain unchanged. The price of Netflix’s “basic” plan will increase by £1 to £7.99 per month in the UK, while its most expensive subscription will increase by £2 to £17.99. The tech giant said it will increase prices for some customers in Britain, as well as the US and France, as subscriptions grew to 247m despite wider troubles in the media industry. Netflix is raising prices in the UK as the maker of The Crown looks to boost profits following a jump in subscribers.
0 Comments
Leave a Reply. |