Netflix stated on Thursday it has reduce costs of its subscription plans in some international locations because the streaming big appears to keep up subscriber development amid stiff competitors and strained shopper spending.
The inventory fell practically 5 %, underperforming the broader market and on track for its worst day in additional than two months.
The previous yr has seen intense competitors within the streaming business as a pandemic-driven growth fades and shoppers curtail spending over fears of a potential recession, forcing firms to rethink their methods.
In keeping with the Wall Road Journal, which first reported the information, the value cuts passed off in some international locations within the Center East, sub-Saharan African, Latin America and Asia.
The cuts apply to sure tiers of Netflix in these markets – in some instances, the price of a subscription was halved, the Journal reported.
Netflix, which operates in over 190 international locations, has been trying to develop its share in newer worldwide areas because the U.S. 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 within the first half of 2022 as rivals similar to Paramount+ and Disney+ raked in subscribers.
However common income per membership declined throughout areas within the final three months of 2022.
“We’re at all times exploring methods to enhance our members’ expertise. We will affirm that we’re updating the pricing of our plans in sure international locations,” a spokesperson for the corporate stated.
The spokesperson didn’t give additional particulars in regards to the worth cuts.
© Thomson Reuters 2023
