Netflix said Thursday it had reduced the prices of its subscription plans in some countries, as the streaming giant looks to maintain subscriber growth amid stiff competition from rivals 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 reported the Netflix news first earlier in the day, the price 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 cost of a subscription, the Journal reported.
Netflix, which operates in over 190 countries, has been looking to grow 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.
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