Written by Samah Labib
Saturday, February 25, 2023 06:00 AM
lowered Netflix Its prices have become cheaper in more than 30 countries and it seems contradictory at first glance, but it appears that the company is testing the right balance of global revenue and subscriber growth as viewers’ habits change after the closure, according to the engadget report.
The company cut prices by up to half in parts of the Middle East (Yemen, Jordan, Libya and Iran), sub-Saharan Africa (Kenya), Europe (Croatia, Slovenia and Bulgaria), Latin America (Nicaragua, Ecuador and Venezuela) and Asia (Malaysia, Indonesia, Thailand and the Philippines), though That periodic price increases have become the norm for Netflix, it also introduced a cheaper ad-supported plan in 12 countries last October.
And the subscription price cuts came as many other streaming services (including Disney+, Hulu, and Sling TV) raised their prices.
“It definitely goes against recent trends not just for Netflix, but for the broader streaming industry,” John Hodulik, media and entertainment analyst at UBS Group AG, told the Wall Street Journal. “Some of these reductions on a percentage basis are significant,” he said.
And on Netflix’s January earnings call, co-CEO Greg Peters said the company wants to find areas where it can raise prices, which helps fund new content investments.
“We think of ourselves as a non-fungible commodity,” said Peters. “Regional price increases allow Netflix to add subscribers to global markets where its share can be higher, and the fact that competing services including Disney+ and HBO Max and Paramount+, in world-class resolution.
Netflix is still introducing a new monthly fee for people who share their login credentials outside their home, after piloting the program in Latin America.
The company launched paid account sharing in Canada, New Zealand, Portugal and Spain, and the new fee costs $8 in Canada and New Zealand, €4 in Portugal and €6 in Spain, and is expected to come to the US early this year.