By Phillip Swann
The TV Answer Man – @tvanswerman
TV Answer Man, I heard on the morning news that Netflix is raising prices again. How can that be?!! What is the increase this time and why do they keep doing this? We’re not rich, you know! — Serena, Lima, Ohio.
Serena, Netflix has not raised prices yet. And it may not although it would not surprise us if it did. Let me explain. The Wall Street Journal reported yesterday that Netflix plans to raise the price of its ads-included $6.99 a month plan “a few months after” the actors’ strike ends. The strike settlement will likely add to Netflix’s expense line, which would trigger the price increase. Or so goes the thinking. “It couldn’t be learned how much Netflix will raise prices by or when exactly the new prices will take effect. Netflix declined to comment,” WSJ writes.
Here’s the problem with assuming that the price of the ads-included plan will increase. First, the actors’ strike hasn’t ended yet and we don’t know when it will. It could be days, weeks or months. Second, add a “few months after” to that equation and we could be talking several months from now before a price hike would go into effect. If it does at all. Netflix could change its mind before then or implement an increase long before this so-called time.
Bottom line: I have no doubt that WSJ is getting the information from reliable sources. But it’s a bit premature to suggest a price increase that could happen months from now is a done deal. Let’s see how it plays out, shall we?
Serena, hope that helps. Happy viewing and stay safe!
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— Phillip Swann