Netflix said Thursday it had reduced the costs of its subscription plans in some countries, because the streaming giant looks to take care of subscriber growth amid stiff competition from rivals and strained consumer spending..
The stock fell nearly 5%, underperforming the broader market and on target for its worst day in greater than two months.
The past 12 months has seen intense competition within the streaming industry as a pandemic-driven boom fades and consumers curtail spending over fears of a possible recession, forcing firms to rethink their strategies.
In keeping with the Wall Street Journal, which reported the Netflix news first earlier within the day, the worth cuts span across some Middle Eastern countries, sub-Saharan African markets and parts of Latin America and Asia.
The cuts apply to certain tiers of Netflix in those markets and in some cases halving the price of a subscription, the Journal reported.
Netflix, which operates in over 190 countries, has been seeking to grow share in newer international regions because the US and Canada markets saturate. Earlier this month, it laid out plans to crack down on password sharing for accounts on its streaming platform.
The corporate added about 7.6 million subscribers within the fourth quarter after bleeding subscribers in the primary half of 2022 as rivals reminiscent of Paramount+ and Disney+ raked in subscribers.
But average revenue per membership declined across regions within the last three months of 2022.
“We’re at all times exploring ways to enhance our members’ experience. We are able to confirm that we’re updating the pricing of our plans in certain countries,” a spokesperson for the corporate said.
The spokesperson didn’t give further details in regards to the price cuts.
