Netflix lowers prices in dozens of countries to boost subscriptions
Netflix has reportedly dropped prices in more than three dozen countries in a bid to boost subscriptions amid stiff competition and customers’ financial worries.
The price change is expected to benefit more than 10 million subscribers — more than 4% of the streaming giant’s estimated 230 million paid users — according to data compiled by London-based data, research and analytics firm Ampere Analysis.
“Effective immediately, Netflix is to drop monthly subscription pricing in more than 100 territories globally,” Toby Holleran, a research manager at the company, wrote Wednesday in a report.
Countries in North America and Western Europe will not receive a reduction in prices. However, many regions across the globe will see discounts from 20% to nearly 60% for the streaming platform’s basic plan, “with the price drop kicking in instantly for new and existing subscribers,” Holleran continued.
These include some countries in Latin America, sub-Saharan Africa, the Middle East and North Africa, Central and Eastern Europe, and the Asia Pacific region.
Customers in some countries — including Nicaragua, Ecuador, Malaysia and the Philippines — have already been notified of the change in price.
Netflix’s price drop comes as other streaming services — including HBO Max, Hulu and Paramount+, the latter of which will soon combine with Showtime — have either raised prices or announced upcoming increases in the cost of certain levels of subscription.
The move “definitely goes against the recent trends not just for Netflix, but for the broader streaming industry,” John Hodulik, a media and entertainment analyst, told The Wall Street Journal.
“Some of these cuts on a percentage basis are substantial,” he added.
“We’re always exploring ways to improve our members’ experience,” a Netflix spokesperson told Reuters. “We can confirm that we are updating the pricing of our plans in certain countries.”