In the global streaming wars, Netflix faces more competition. It has cut pricing in more than 100 markets worldwide, sometimes dicing the price of monthly plans in half to increase subscriber acquisition and retention.
The streamer has decreased prices in countries and territories across Asia, the Middle East, Latin America, Europe, and Africa. Netflix is not decreasing prices in North America or Western Europe, its most mature markets.
According to research firm Ampere Analysis, the price reductions span more than 100 markets (see below the list).
Those include Malaysia, Ecuador, Indonesia, Thailand, Kenya, the Philippines, Croatia, Venezuela, Nicaragua, Iran, Bosnia and Herzegovina, Serbia, Albania, Slovakia, Yemen, Jordan, Libya, Slovenia, North Macedonia, and Bulgaria.
For example, in Venezuela, Netflix’s single-stream Primary plan is now $3.99/month (down 50% from $7.99 previously), the four-stream Premium tier is now $7.99/month (vs. $13.99), and the two-stream Standard plan is $5.99/month (vs. $10.99 before);. The Standard was decreased from ₱459 to ₱399/month, and in the Philippines, the Basic dropped from ₱369 to ₱249/month.
Netflix proved it had reduced pricing in certain countries but did not describe which ones. The Wall Street Journal earlier said on the company’s price cuts. Members have never had more options when it comes to entertainment. A rep said, “We’re always exploring ways to enhance our members’ understanding.
Netflix earned 7.7 million new subscribers, developing its base in all geographic regions & blowing past the 4.5 million pickups it had earlier forecasted by the end of 2022 worldwide to reach 230.75 million.
On the earnings call in January, Greg Peters, Netflix’s newly named co-CEO as Reed Hastings strolled aside, said it had a chance to attract new clients in countries where the streamer is not deeply penetrated.
Peters told analysts, “When you think about the pricing question.
We want to create that scope even more exhaustive as we seek to serve more additional members worldwide to give proper value at those various price points,”.
“And we’re doing a good job raising that scope,” Peter added. There’s a bunch of people around the world in countries where we’re not deeply pierced, and we have more chances to attract them.”
Nevertheless, Netflix has begun to broaden the distribution of its paid-sharing scheme this year to convert illicit password-sharing users to paying subscribers.
According to Netflix’s terms of service, subscribers may only share their accounts with household members. Netflix announced earlier this month that it would begin barring devices it detects trying to illegally piggyback on someone else’s account in Portugal, Canada, New Zealand, and Spain.
Peters stated on the results call; This will not be a widely supported approach. There will be some cancel reaction to it, analogous to what Netflix ventures when it boosts its prices. We must encourage them and build features that make the switch to their account smooth and uncomplicated.
