Tech
Netflix Lowers Prices In 30+ Countries For Subscription Growth
(CTN NEWS) – Netflix Inc. announced on Thursday that it has lowered the cost of some of its subscription plans as the streaming juggernaut attempts to maintain membership growth in the face of fierce competition and constrained consumer spending.
The stock decreased by almost 5%, falling behind the general market and heading for its worst day in more than two months.
Intense competition has been present in the streaming market over the past year as a pandemic-driven boom fades and consumers cut down on spending out of concern about a potential recession, causing businesses to reconsider their business models.
The price reductions, according to the Wall Street Journal, which broke the news first, took place in a few Middle Eastern, sub-Saharan African, Latin American, and Asian nations.
Netflix
Netflix Strictly Prohibit Password Sharing
The discounts only apply to select Netflix subscription tiers in particular markets; according to the Journal, in some circumstances, the cost of a subscription was cut in half.
The U.S. and Canada markets are saturated, therefore Netflix, which has operations in more than 190 countries, has been attempting to increase its market share in emerging overseas markets.
It announced measures earlier this month to strictly prohibit password sharing for accounts on its streaming platform.
After losing customers in the first half of 2022 as competitors like Paramount+ and Disney+ vacuumed in subscribers, the firm added roughly 7.6 million new subscribers in the fourth quarter of that year.
Netflix
Netflix Average Revenue
But during the final three months of 2022, average revenue per membership fell across all areas.
“We’re continuously looking for ways to make the membership experience better. We can vouch for the fact that in some nations we are altering the prices of our plans “a company spokeswoman stated.
The representative withheld additional information regarding the pricing reductions.
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