Netflix has slashed prices of its subscription plans in some countries as the streaming major looks to maintain subscriber growth amid stiff competition and strained consumer spending.
As a result, stocks of Netflix fell nearly 5 per cent, underperforming the broader market and on course for its worst day in more than two months.
The move comes as the streaming industry has seen intense competition over the past year. Also, the boom – driven by pandemic – has started to fade and consumers have curtailed spending over fears of a possible recession, forcing companies to rethink their strategies.
According to the Wall Street Journal, which first reported the news, the price cuts took place in some countries in the Middle East, sub-Saharan Africa, Latin America and Asia.
The cuts apply to certain tiers of Netflix in those markets – in some cases, the cost of a subscription was halved, the Journal reported.
Netflix, which operates in over 190 countries, has been looking to grow its share in newer international regions as the U.S. and Canadian markets saturate. Earlier this month, it laid out plans to crack down on password sharing for accounts on its streaming platform.
The company added about 7.6 million subscribers in the fourth quarter after bleeding subscribers in the first half of 2022 as rivals such as Paramount+ and Disney+ raked in subscribers.
But average revenue per membership declined across regions in the last three months of 2022.
“We’re always exploring ways to improve our members’ experience. We can confirm that we are updating the pricing of our plans in certain countries,” a spokesperson for the company said.
The spokesperson did not give further details about the price cuts.
With Reuters inputs
