Netflix Cuts Subscription Prices In Select Markets To Drive User Growth

Netflix Inc said on Thursday it has cut the prices of its subscription plans in some countries as the streaming giant seeks to maintain subscriber growth amid tough competition and stressed consumer spending.

The stock fell nearly 5%, underperforming the broader market and on course for its worst day in more than two months.

The past year has seen intense competition in the streaming industry as a pandemic-induced boom and consumers cut spending on 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 African, Latin America and Asia.

Deductions apply at certain levels Netflix In those markets — in some cases, the cost of membership was halved, the Journal reported.

Netflix, which operates in more than 190 countries, is looking to grow its share of new international territories as the US and Canada markets become saturated. Earlier this month, it announced plans to crack down on the sharing of passwords for accounts on its streaming platform.

The company added nearly 7.6 million subscribers in the fourth quarter after the number of subscribers surged in the first half of 2022 as rivals such as Paramount+ and Disney+ surged.

But in the last three months of 2022, average revenue per subscription declined across all regions.

“We are always looking for ways to improve the experience for our members. We can confirm that we are updating the prices of our plans in certain countries.

The spokesperson did not give further details about the price cut.

read all Latest Tech News Here

(This story has not been edited by News18 staff and is published from a syndicated news agency feed)