Netflix Inc has announced price cuts in various countries for some of its subscription tiers as the streaming giant tries to maintain subscriber growth in the face of strong competition and restrained consumer spending. The price cut was implemented in some Middle Eastern, Sub-Saharan, Latin American and Asian countries.
The discount only applies to select Netflix subscription tiers in certain regions. In some circumstances, the cost of membership was reduced to half.
The stock fell nearly 5%, lagging the general market and headed for its worst day in more than two months.
The streaming market has seen strong competition as a pandemic-induced boom and customers cut spending fearing a future recession have led major corporations to re-evaluate their approach.
Netflix, which operates in more than 190 countries, is attempting to increase its market share in a growing number of international territories. Netflix said earlier this month that it would strictly limit password sharing for accounts on its streaming platform.
After losing customers in the first half of 2022 as competitors such as Paramount+ and Disney+ vacuumed up users, the firm added nearly 7.6 million new subscribers in the fourth quarter of that year. Still, average revenue per subscription declined across all categories during the last three months of 2022.
Netflix executives talked about increasing fees as late as last month. Co-chief executive Greg Peters said during a January earnings conference call that the firm is exploring markets where it can raise rates to support ongoing content spending.
Netflix announced earlier this month that it would begin implementing new sharing limits in some countries, including Canada and Spain, and will do so more widely in the coming months.
questions to ask
Q1 Who is the CEO of Netflix?
Ted Sarandos
Q2 What is the minimum charge for Netflix subscription in India?
Rupee. 149 is the minimum charge for Netflix in India
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