In the past year, streaming services have become increasingly competitive. The boom caused by the covid-19 pandemic is already waning, and consumers are also cutting back on spending due to fears of an economic recession, which is forcing companies to reassess their strategy.
The WSJ reported that Netflix has cut prices in some countries in the Middle East, sub-Saharan Africa, Latin America, and also in Asia. The cuts apply to certain levels of Netflix service in those markets – in some cases subscriptions have been cut in half, the newspaper said. In Europe, the price reduction applies to Croatia, Slovenia and Bulgaria. The Czech Republic is not on the available lists of countries where prices are to be reduced.
“We are always exploring ways to provide more experiences for our members. We can confirm that we will be updating our subscription pricing in some countries,” a company spokesperson said. He did not say anything more detailed about it.
Netflix has added subscribers. The company’s shares rose by 14 percent
Economic
Netflix operates in more than 190 countries around the world. The company is looking for new subscribers outside the United States and Canada, where the market is already saturated according to experts. Earlier this month, Netflix unveiled plans to limit the sharing of account passwords on its streaming platform.
The company increased its subscribers by about 7.6 million to more than 230 million in the fourth quarter. In the first half of last year, Netflix experienced an outflow of clients, some of whom began subscribing to similar services from competitors such as Paramount+ and Disney+.
In the last three months of last year, the average revenue per Netflix membership fell in all regions. The company’s shares reacted to the announcement of a price cut by falling almost five percent.
