Netflix Inc (NFLX.O) announced on Thursday that it has reduced the prices of its subscription plans in some countries in order to maintain subscriber growth in the face of stiff competition and strained consumer spending.
The stock dropped nearly 5%, trailing the broader market and on track for its worst day in more than two months.
The streaming industry has seen intense competition in the last year as a pandemic-driven boom fades and consumers cut back on spending due to recession fears, forcing companies to rethink their strategies.
According to the Wall Street Journal, which broke the story first, the price cuts occurred in countries throughout the Middle East, Sub-Saharan Africa, Latin America, and Asia.
The discounts apply to certain tiers of Netflix in those markets, with the cost of a subscription being cut in half in some cases, according to the Journal.
Netflix, which operates in over 190 countries, has been looking to expand its presence in newer international markets as the markets in the United States and Canada become saturated. It announced plans earlier this month to restrict password sharing for accounts on its streaming platform.
According to the Wall Street Journal, which broke the story first, the price cuts occurred in countries throughout the Middle East, Sub-Saharan Africa, Latin America, and Asia.
The discounts apply to certain tiers of Netflix in those markets, with the cost of a subscription being cut in half in some cases, according to the Journal.
Netflix, which operates in over 190 countries, has been looking to expand its presence in newer international markets as the markets in the United States and Canada become saturated. It announced plans earlier this month to restrict password sharing for accounts on its streaming platform.
