Last updated: February 24, 2023, 8:49 AM IST
Netflix Inc said on Thursday it has cut prices on its subscriptions in some countries as the streaming giant looks to maintain subscriber growth amid fierce competition and strained consumer spending.
The stock fell nearly 5%, underperforming the broader market and heading for its worst day in more than two months.
The past year has seen fierce competition in the streaming industry as a pandemic-induced boom eases and consumers are limiting spending for fear of a potential recession, forcing companies to rethink their strategies.
According to the Wall Street Journal, which first reported the news, the price cuts occurred in some countries in the Middle East, sub-Saharan Africa, Latin America and Asia.
The cuts apply to certain levels of Netflix in those markets — in some cases, the cost of a subscription was cut in half, the Journal reported.
Netflix, which operates in more than 190 countries, has been trying to increase its share in newer international regions as markets in the US and Canada become saturated. Earlier this month, it made 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 a bleeding subscriber count in the first half of 2022 as rivals like Paramount+ and Disney+ brought in subscribers.
But the average revenue per membership fell in all regions in the last three months of 2022.
“We are always looking for ways to improve our members’ experience. We can confirm that we are updating the prices of our subscriptions in certain countries,” said a company spokesperson.
The spokesman did not provide further details about the price reductions.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)