Netflix slashes subscription plan prices by up to half in some countries as shares fall 5%

Netflix said on Thursday it had cut prices for its subscription plans in some countries as the streaming giant seeks to maintain subscriber growth amid fierce competition and tight 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 intense competition in the streaming industry as the pandemic-driven boom wanes and consumers cut spending for fear of a possible recession, forcing companies to rethink their strategies.

According to the Wall Street Journal, which first reported the news, the price cuts took place in some countries in the Middle East, sub-Saharan Africa, Latin America and Asia.

The discounts apply to certain tiers of Netflix in those markets – in some cases the cost of a subscription has been cut in half, the Journal reported.

Netflix, which operates in more than 190 countries, is looking to increase its share in new international regions as the US and Canadian markets saturate. Earlier this month, it outlined plans to crack down on sharing passwords for accounts on its streaming platform.

The company added about 7.6 million subscribers in the fourth quarter after losing subscribers in the first half of 2022 as rivals such as Paramount+ and Disney+ lured subscribers.

But the average revenue per membership declined in all regions in the last three months of 2022.

“We are always exploring ways to improve our members’ experience. We can confirm that we are updating our plan pricing in select countries,” a company spokesperson said.

The spokesperson did not provide further details on the price cuts.

© Thomson Reuters 2023