Streaming giant Netflix has lowered the cost of some of its subscription plans as it seeks to maintain its membership growth amidst fierce competition and constrained consumer spending. The move reportedly took place in various Middle Eastern, sub-Saharan African, Latin American, and Asian countries. The price cuts, according to the Wall Street Journal, only apply to select Netflix levels in those regions, and in certain situations, the membership cost was slashed in half.
As the marketplaces in the United States and Canada become saturated, Netflix, which has operations in over 190 countries, has been attempting to increase its market share in more recent foreign areas. However, the price reductions have resulted in the stock falling behind the general market by about five percent, heading for its worst day in over two months. Netflix also announced earlier this month that it will strictly prohibit the sharing of passwords for accounts on its streaming platform as it tries to grow its subscriber base.

The streaming sector has experienced fierce competition over the past year as a pandemic-driven boom fades, prompting businesses to reconsider their strategy. While Netflix added roughly 7.6 million new subscribers in the fourth quarter of 2022 after losing customers in the first half of the year to competitors like Paramount+ and Disney+, the average income per membership fell across all areas during the last three months of the year.
A Netflix business spokeswoman stated that the company is constantly looking for ways to enhance the membership experience, although no further information was provided on the pricing reductions.