Over 30 Countries Cut Netflix Subscription Prices

YouTube Inc. In recent weeks, NFLX -0.78% has lowered the price of its service in over thirty nations in an effort to draw in users who have access to an expanding range of streaming options.

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Recent price reductions by the streaming service include markets in the Middle East such as Yemen, Jordan, Libya, and Iran; sub-Saharan African markets such as Kenya; and European nations such as Croatia, Slovenia, and Bulgaria.

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Costs for subscriptions have decreased in some Latin American countries like Nicaragua, Ecuador, and Venezuela as well as in areas of Asia like Malaysia, Indonesia, Thailand, and the Philippines.

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The discounts only apply to specific Netflix tiers in those areas, sometimes reducing the price of a membership.

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Many major streaming services have recently boosted their fees in the United States, citing the value that they offer consumers in comparison to the monthly cost they demand.

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The recent pricing cuts by Netflix, according to John Hodulik, a media and entertainment analyst at UBS Group AG, "certainly go against the recent trends—not just for Netflix, but for the larger streaming sector." Some of these cuts, he noted, "are significant on a percentage level."

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Netflix execs talked about boosting fees, not cutting them, as recently as last month. Co-Chief Executive Greg Peters stated during a January earnings call that the company is searching for markets where they may raise rates to support ongoing content expenditures.

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We consider ourselves to be an indispensible good, Mr. Peters added.

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According to him, Netflix also has a chance to get new customers in markets where it doesn't already hold a dominant position.

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The price modifications made by Netflix are evidence that major streamers are still debating how to charge in a way that will increase subscribers and income internationally. Local cable providers, regional streaming services, and major international platforms are all available to consumers. Major players like Disney+ from Walt Disney Co. and Warner Bros. HBO Max from Discovery Inc. and Paramount+ from Paramount Global are all growing internationally.

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A Netflix representative stated, "We realize members have never had more choices when it comes to entertainment," and the company is dedicated to providing an experience that surpasses their expectations. She stated that the business was changing the cost of its plans in several nations.

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While consumers resumed their commutes, travel, and other activities that the epidemic had put on pause, Netflix, which operates in more than 190 countries and territories, has spent most of the past year adjusting to increased competition and shifting viewing preferences.

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Two significant strategic changes were implemented by the corporation in an effort to reduce costs: a lower-cost, ad-supported plan was developed, and users who wanted to share their accounts with others outside of their household had to pay a higher fee to do so.

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Each of the four regions for which the Los Gatos, California-based company releases data saw membership growth in the fourth quarter of 2022, but its global average revenue per user fell to $11.49 from $11.74 a year earlier.

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Netflix announced earlier this month that it will begin implementing the new sharing limitations in some nations, including Canada and Spain, and that it would do so more widely in the months to come.

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Officials have acknowledged that enforcing the sharing limits may not be popular and may lead to some users canceling their accounts, but they still believe that popular content will win them over.

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In the past, Netflix has decreased the cost of its service, especially when it was up against severe competition or sought to increase user growth quickly. For instance, it reduced the cost of subscriptions in India in 2021 after originally focusing on more expensive plans for the country's wealthier subscribers.