Netflix Inc. has announced price cuts in various countries for some of its membership levels as the streaming giant tries to maintain subscriber growth in the face of strong competition and restrained consumer spending. The price reductions were implemented in a few Middle Eastern, sub-Saharan, Latin American, and Asian nations.
The discounts only apply to select Netflix membership tiers in particular regions. In some circumstances, the cost of a subscription was slashed by half.
The stock fell by about 5%, falling behind the general market and heading for its worst day in more than two months.
The streaming market has seen strong competition as a pandemic-driven boom fades and customers cut spending out of fear of a future recession, leading corporations to reevaluate their approach.
Netflix, which operates in over 190 countries, has been striving to boost its market share in rising international regions. 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 like Paramount+ and Disney+ vacuumed in users, the firm added roughly 7.6 million new subscribers in the fourth quarter of that year. Yet, average income per membership declined in all categories during the last three months of 2022.
Netflix executives spoke about hiking fees, as late as last month. Co-Chief Executive Greg Peters stated during a January earnings conference that the firm is searching for markets where they may boost rates to support ongoing content expenditures.
Netflix announced earlier this month that it will begin implementing the new sharing limitations in some nations, including Canada and Spain, and that it would do so more widely in the months to come.
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Q2 What is the minimum charge for a Netflix subscription in India?
Rs. 149 is the minimum charge for Netflix in India
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