Netflix subscription fees cut to outmanoeuvre rivals
Streaming giant Netflix has cut subscription prices by up to 60% in over 30 countries
Streaming giant Netflix has cut subscription prices by up to 60% in over 30 countries, including Thailand. Netflix subscription fees are seen as too high amid serious competition. The move to cut prices could boost growth.
Why do Netflix subscription fees matter?
While streaming services such as Apple TV+ and Disney+, have decided to hike subscription rates, Netflix has decided to do the opposite. Given the number of streaming options available, the company appears to be shifting its focus to strengthening its user base.
Netflix currently has over 230 million subscribers worldwide
The subscription fees have been slashed in certain parts of Asia, Europe, Latin America, the Middle East and Sub-Saharan Africa. Fees have been reduced in over 30 countries according to Wall Street Journal. The list includes Egypt, Nicaragua, and Thailand.
What is the reason behind the reduction in Netflix subscription fees?
Netflix recently introduced “paid sharing” where customers are charged a monthly fee in order to share their login with users outside their homes. This was not well received by many users and is widely seen as a profiteering attempt by the channel to evade its own T&C.
Netflix’s plans to crack down on password sharing were made apparent in 2019. In March 2022, Netflix then announced it was cracking down on password sharing by testing out new restrictive measures in Chile, Costa Rica and Peru.
The latest price cut lowers the cost of Netflix and could help recruit new customers. It will also help the streaming company combat competition in several markets.
Netflix subscription fees affect more than 4% of Netflix’s subscriber base
The reduction in Netflix’s subscription plan varies from country to country, but discounts for the basic tier range between 20% and 60%, according to a report by Ampere Analysis. It is estimated that the price drop affects more than 4% of Netflix’s subscriber base. The reduced rates are applicable to existing users as well as new subscribers.
