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Netflix is lowering subscription prices in a few countries as streaming competition heats up.
In recent weeks, the corporation has reduced the price of various tiers of its service in over 30 countries, including Yemen, Jordan, Iran, Kenya, Croatia, Venezuela, and Indonesia, among others. The revisions were first reported by the Wall Street Journal.
“We’re always exploring ways to improve our members’ experience. We can confirm that we are updating the pricing of our plans in certain countries,” a Netflix spokesperson told Yahoo Finance.
The price reduction vary by nation, but Wells Fargo estimates that most areas will see price cuts ranging from 20% to 45%, with statistics from Ampere Analytics indicating that the shift could effect more than 10 million users, or around 4% of the company’s total subscriber base.
The modifications had no effect on the United States or Western Europe, where average revenue per membership is substantially greater.
Surprisingly, Netflix made no mention of pricing decreases in its most recent quarterly report.
The company said 2022 began with a “bumpy start but a brighter finish,” adding, “We believe we have a clear path to reaccelerate our revenue growth” in 2023.
As it seeks to increase profitability, the corporation has been active in its international expansion. The streamer is presently available in over 190 countries and territories.
Following the news, Netflix shares fell more than 4% in early trading on Thursday.
Streaming behemoths have altered their pricing and strategies in recent months to meet Wall Street’s new profitability criteria.
Importantly, Netflix is currently engaged in a contentious password sharing crackdown, which has enraged consumers while rates continue to rise. Netflix’s normal plan is presently $15.49 per month in the United States, with its premium plan costing up to $19.99 per month – one of the most costly ad-free subscriptions on the market.
Hulu charges $14.99 per month for ad-free service, Disney+ charges $10.99 per month, HBO Max is $15.99 per month, and Paramount+ charges $9.99 per month.
Apple TV+ is by far the cheapest at $6.99 per month, but the business has only a fraction of the shows with a reported $6.5 billion in content investment. Netflix spends over $17 billion on content each year.
Customers appear to be experiencing streaming fatigue, indicating that what worked in the past may no longer be effective now.
According to UBS Evidence Lab’s fourth annual video streaming survey, which polled 1,200 Americans on their video viewing habits, Netflix (NFLX), Apple TV+ (AAPL), Amazon Prime Video (AMZN), and Hulu (DIS) have all seen a drop in iPhone penetration since 2020, when pandemic restrictions inflated the value of streaming companies across the board.
Yet, despite a flurry of high-profile and record-breaking content releases, including “Glass Onion,” “Troll,” “All Quiet on the Western Front,” “My Name is Vendetta,” and “Wednesday,” survey respondents rated Netflix as the “best value for money.”
