Netflix said on Thursday it had slashed the prices of its subscription plans in some countries because the streaming giant looks to keep its subscriber growth amid stiff competition from rivals and strained consumer spending.
Shares fell nearly 5%, underperforming the broader market and headed for his or her worst day in over two months.
The past 12 months has seen intense competition in the streaming industry because the pandemic-induced boom fades and consumers reduce on spending fears of a possible recession, forcing corporations to rethink their strategies.
According to the Wall Street Journalwhich was first reported to Netflix earlier in the day, the worth cuts include some countries in the Middle East, sub-Saharan African markets, and parts of Latin America and Asia.
The cuts affect some tiers of Netflix in those markets, and in some cases halve the fee of subscriptions, the every day reported.
Netflix, which operates in greater than 190 countries, is looking to increase its share in latest international regions as markets in the US and Canada grow to be saturated. Earlier this month, he outlined plans to crack down on account password sharing on his streaming platform.
The corporate added around 7.6 million subscribers in the fourth quarter after bleeding subscribers in the primary half of 2022 as rivals like Paramount+ and Disney+ gained subscribers.
Nevertheless, average revenue per membership declined by region in the last three months of 2022.
“We’re all the time searching for ways to improve our members’ experience. We will confirm that we’re updating the pricing of our plans in some countries,” an organization spokesperson said.
The spokesperson didn’t provide further details on the worth cuts.