Netflix cuts prices in some countries to boost subscriptions, shares drop
- Netflix is cutting the price of certain tiers in the Middle East, sub-Saharan African, Latin America and Asia
- The video streamer has been looking for growth in newer international regions and has introduced new policies against password sharing
The stock fell nearly 5 per cent, underperforming the broader market and on course for its worst day in more than two months. The past year has seen intense competition in the streaming industry as a pandemic-driven boom fades and consumers curtail spending over fears of a possible recession, forcing companies to rethink their strategies.
According to the Wall Street Journal, which first reported the news, the price cuts took place in some countries in the Middle East, sub-Saharan African, Latin America and Asia.
The cuts apply to certain tiers of Netflix in those markets – in some cases, the cost of a subscription was halved, the Journal reported.
Netflix, which operates in over 190 countries, has been looking to grow its share in newer international regions as the US and Canada markets saturate. Earlier this month, it laid out plans to crack down on password sharing for accounts on its streaming platform.