With the exception of the United States, Canada, and the majority of Europe, Netflix is cutting the cost of its subscription in over 30 nations.
The need to maintain subscriber growth in the face of fierce competition and constrained consumer spending has led to this decision, according to Reuters.
The Company Is Looking To Adapt To The Industry's Challenges
The streaming sector has experienced fierce competition over the past year as a pandemic-driven boom fades and customers reduce spending out of concern for a potential recession.
This has prompted several businesses to reexamine and reshape their business strategy to cope with the competition and customer demands.
Because of this, Netflix pricing is dropping in more than 30 nations, despite an increase in North American prices a year ago.
The company appears to be experimenting with the correct mix of global revenue and subscriber development as viewing habits shift after lockdowns, despite the seeming contradiction.
These price cuts supposedly only apply to certain Netflix tiers, but they occasionally result in a monthly fee that is lowered in half.
According to Engadget, here are some of the countries that are affected by the price cuts:
Yemen
Jordan
Libya
Iran
Kenya
Croatia
Slovenia
Bulgaria
Nicaragua
Ecuador
Venezuela
Malaysia
Indonesia
Thailand
Philippines
However, The Verge says that a separate report has found that the price drops might also be happening in the following countries such as:
Bosnia
Herzegovina
Serbia
Albania
North Macedonia
Slovakia
Read More: Netflix's Password-Sharing Policy Has Started in Some Countries
The Changes Netflix Implement Have Been Constant
It is notable that even though Netflix frequently raises prices, it also debuted a less expensive ad-supported plan in 12 countries last October.
The subscription price reductions coincide with recent pricing increases for a number of other streaming services, including Disney+, Hulu, and Sling TV.
"It definitely goes against the recent trends not just for Netflix, but for the broader streaming industry, some of these cuts on a percentage basis are substantial," John Hodulik, media and entertainment analyst at UBS Group AG notes.
Greg Peters, co-CEO of Netflix, stated on the firm's January earnings call that the company is looking for opportunities to boost fees in order to support investments in new content.
Due to regional pricing hikes, Netflix was able to expand into regions where it could get a larger market share.
"We seek to serve more members around the world in trying to deliver appropriate value at those different price points, and we're doing a good job expanding that range," Peters claims.
According to Engadget, it is likely that the decision was influenced by the fact that competing services like Disney+, HBO Max, and Paramount+ are growing internationally.
It can be remembered that a new monthly fee is still being rolled out by Netflix for users who disclose their login information outside of their residences.
The company launched paid account sharing in Canada, New Zealand, Portugal, and Spain, and is expected to reach the US after testing the product in Latin America.
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