Monitoring Desk
ISLAMABAD/LONDON: Netflix Inc said that it had 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 percent, underperforming the broader market and on course for its worst day in more than two months. The previous year has seen intense competition in the streaming industry as a pandemic-driven boom fades. Consumers curtail spending over fears of a recession, forcing companies to rethink their strategies.
Prices cut took area
According to the Wall Street Journal, the first reported news, the price cuts occurred in some Middle Eastern countries, sub-Saharan Africa, Asia, and Latin America.
The Journal reported the cuts to apply to certain tiers of Netflix in those markets; in a few cases, the cost of a subscription was halved.
Netflix operates in over 190 nations and has been looking to grow its share in newer international regions such as the United States (US0 and Canadian markets saturate. Earlier this month, it laid out plans to crack down on Netflix password sharing for accounts on its streaming platform.
The company said about 7.6 million subscribers in the fourth quarter after bleeding subscribers in the first half of 2022 as rivals such as Disney Paramount raked in subscribers.
But average revenue per membership declined across the regions in the previous three months of 2022. A company spokesperson said, “We are always exploring ways to improve our members’ experience. We can confirm we are updating the pricing of our plans in certain nations,”.
