Netflix is finally trying to make some money. After roughly a decade of producing Gray Mans and Red Notices for hundreds of millions of dollars without charging people to see them in movie theaters, the streaming giant finally realized that if it charged consumers more money, it could recoup some of its investment. As such, starting Wednesday, Netflix subscribers in the U.S., U.K., and France will see price increases.
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Per The Hollywood Reporter, Netflix announced these price hikes in its third-quarter shareholder letter, and U.S. basic and premium plans are on the rise. The basic plan, the company’s lowest ad-free tier, will increase from $9.99 to $11.99. The premium plan that lets users watch 4K videos goes from $19.99 to $22.99. However, plans with ads and the standard plan are staying locked in place at $6.99 and $15.49, respectively.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same—a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said.
Strangely, the increase comes after the company reported $8.5 billion in revenue, with an income of $1.9 billion, and that’s during two simultaneous strikes, one of which they still can’t find the money to settle. Netflix also reports that their password crackdown, which probably led to such a profitable quarter, was largely a huge success. The company says it added 5.9 million subscribers in the last quarter.
“The last six months have been challenging for our industry given the combined writers and actors strikes in the US,” the company said. “While we have reached an agreement with the WGA, negotiations with SAG-AFTRA are ongoing. We’re committed to resolving the remaining issues as quickly as possible so everyone can return to work making movies and TV shows that audiences will love.”
Unfortunately, there’s still a $480 million gap between SAG-AFTRA and the AMPTP. According to Variety, SAG-AFTRA wants to update residuals on streaming, which would cost $500 million annually. The AMPTP is willing to pay $20 million. But from the looks of Netflix’s recent quarter and its price increases, one thing is clear: Netflix can afford to pay its actors.