Netflix cuts prices in some countries to boost subscriptions, shares drop

Netflix Inc said on Thursday it has cut prices of its subscription plans in some countries as the streaming giant looks to maintain subscriber growth amid stiff competition and strained 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-driven boom fades and consumers curtail 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 African, 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 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 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

Date:25-Feb-2023 Reference:View Original Link