As the global cost of living crisis continues to bite and the streaming wars show no signs of abating, Netflix has cut prices in more than 30 different countries, according to report in the Wall Street Journal.
The discounts were rolled out this week mainly in lower-income regions in Asia, Europe, Latin America, Sub-Saharan Africa and the Middle East, where subscription demand is currently relatively low.
Countries that saw subscription price drops ranging from 20% to 60% include Croatia, Slovenia, Bulgaria, Nicaragua, Ecuador, Venezuela, Malaysia, Indonesia, Vietnam, Thailand, Philippines, Egypt, Yemen, Jordan, Libya, Iran and Kenya.
There is currently no indication that similar price drops will be offered in established regions such as the US, UK and Australia.
“We’re always looking for ways to improve our members’ experience,” Netflix said in a Thursday statement. “We can confirm that we are updating the pricing of our plans in some countries.”
The move comes as Netflix faces increased competition from competing services while making the unpopular move of imposing password sharing limits.
Recognizing increased competition from rival services such as Disney Plus, Apple TV Plus and Paramount Plus, a spokesperson for Netflix he told the BBC“Members have never had more choice when it comes to entertainment.”
Analysis: Netflix will have a problem and these price cuts won’t help
The March deadline for the long-awaited (and much-hated) end of password sharing for many Netflix viewers is fast approaching, and yesterday’s deadline will do little to ease the disappointment of those who are no longer able to comply with family or friends accounts.
It is clear that these discounts are primarily used to encourage new subscribers in Netflix’s growing territories, meaning price drops are unlikely to benefit the majority of those affected by the upcoming rule change.
From efforts to steer new customers towards full-fledged subscriptions rather than cheaper ad-supported tiers, to the controversial removal of high-profile shows such as 1899 Or Warrior Nunit’s clear that 2023 will be largely about Netflix revenue growth, even if that means losing some eyeballs.
By the end of 2022, the company’s financial results had grown to a subscriber base of 7.66 million, but with the looming password culling coming into effect soon – a risky move that notably has yet to be embraced by rivals such as Disney Plus and Hulu – it remains to be seen if the streaming service has made the right connection.
After taking away the flexibility of sharing passwords (something like that company sometimes encouraged in the past), a price cut in countries where it blocks the feature may have helped stem the tide of anger. But that’s not what’s going on.
If you’ve decided your time with the streaming giant is coming to an end, be sure to check out our list of the best Netflix shows before your subscription is canceled, as well as take a look at our picks of the best streaming services to see if there’s an alternative that floats your boat.