Netflix’s recent announcement over crackdown on password sharing in the coming months had some subscribers spooked, with some opting to unsubscribe from the streaming service. Netflix’s stock fell nearly 5% on Thursday, making it the company’s worst underperformance within the last few months. In fact, competition in the streaming business has risen in the past few years that companies like Netflix need to rethink their strategies.
The streaming company operates in over 190 countries and has been looking to grow its newer international clienteles. The company has added around 7.6 million subscribers during the last quarter of 2022 but has lost subscribers to rivals during the first three. Overall, the decline in membership revenue across regions is noticeable.
To help draw in subscription numbers, Netflix has decided to cut prices in a number of places: Middle-Eastern countries, European countries, Latin American countries, as well as Asian countries.
The price cut by Netflix comes out as very strategic due to the number of streaming services raising their prices recently. While it goes against the trend of the company to periodically raise their subscription prices, this strategic move may help generate added subscribers.
“We’re always exploring ways to improve our members’ experience. We can confirm that we are updating the pricing of our plans in certain countries,” a spokesperson for the company said. No further details over the price cut have been mentioned.
The price change that Netflix has made is a sign that they are committed to the words of their co-CEO as being a non-substitutable streaming company.