Netflix has lowered prices in more than 30 countries in a desperate attempt to attract more subscribers in underperforming markets.
European countries such as Croatia, Slovenia, and Bulgaria, but not the UK, are benefiting from the reduction of various Netflix level options.
Prices have also been cut in the Middle East, including Yemen, Jordan and Iran and African countries such as Kenya.
It is believed that the price cuts are an attempt to attract subscribers in markets where the number is not impressive.
Netflix has already tried to find ways to increase revenue. for example, the controversial ban on password sharing.
Netflix cuts apply to certain levels in more than three dozen markets – in some cases, subscription prices are halved, according to report (file photo)
Ultimately, Netflix’s price cuts could lead to higher revenues from countries that lag behind the strongest markets, such as North America and Western Europe.
Netflix subscribers by region in 2023
North America – 77 million
Latin America – 25 million
south of the sahara – 4 million
Middle East and North Africa – 8 million
Western Europe – 48 million
Eastern Europe – 9 million
Asian-Pacific area – 28 million
Source: Digital TV Study.
But competing services including Disney+, HBO Max and Paramount+ are also expanding their presence overseas, forcing Netflix to make attractive offers.
“This definitely goes against the latest trends, not just for Netflix, but for the wider streaming industry,” said John Hodulick, media and entertainment analyst at UBS Group AG. Wall Street Magazine.
“Some of those percentage cuts are significant.”
According to the WSJ, the cuts are for “certain levels” and in some cases the subscription price has been halved.
In total, more than 36 countries received price cuts, including the Latin American countries of Nicaragua, Ecuador and Venezuela, as well as the Asian countries of Malaysia, Indonesia, Thailand and the Philippines.
MailOnline has contacted Netflix for comment.
Netflix, which streams in more than 190 countries, has previously taken steps to boost usage in Africa, where it only has about 1.5 million subscribers – a fraction of 17 million in the UK and 74 million in North America.
The streaming giant previously launched free subscription plan for users in Kenya With Android phone, albeit with limited content.
Netflix has launched a free subscription plan for users in Kenya with an Android phone, but with a reduced amount of content.
Greg Peters, co-CEO of Netflix, hinted during the company’s earnings call last month that it could cut prices where user numbers are low.
“There are a lot of people around the world in countries where we have not penetrated deeply, and we have more opportunities to attract them,” he said.
At the time, Netflix reported that it had added 7.7 million subscribers in the three months from October to December, although it suffered its first loss of subscribers in 2022.
What’s more, his 12-month net income fell 91 percent to $55.3 million.
Two major attempts were made to reverse their fading condition. launching a new level that shows ads And suppression of password exchange.
Under the new rules, people who watch Netflix on someone else’s account will have to create their own logins and pay for their own accounts as early as March.
As an alternative, those who still want to share an account with people in a different home will have to subscribe to “paid exchange” for a few extra pounds a month.
Password sharing is the habit of Netflix users to share their password with other people who live outside of their home.
This allows these so-called “freeloaders” to access their account, create their own profile, and watch movies and TV shows without paying a dime.
“We have people who watch Netflix but don’t pay us to actually borrow someone’s credentials,” Peters said in January.
Netflix co-CEO Greg Peters (pictured) hinted during the company’s January earnings report that he could cut prices where user numbers are low.
Netflix is directing new users to its £4.99 “Basic with Ads” subscription tier, which has been rolling out since November.
Our goal this year is to basically work through this situation and convert a lot of these people to paid accounts or get the account holder to pay for them to get enough subscriptions.
“But in any case, we are looking to kind of monetize the viewing value that we provide.”
Netflix now has four subscription tiers: Basic with Ads (£4.99 per month), Basic (£6.99), Standard (£10.99) and Premium (£15.99).
As the name suggests, Basic with Ads is the only Netflix tier that shows ads during movies and seriesThat is why it is at a lower price than others.
Interestingly, new users seem to be advised to select Basic with ads when they are redirected to Netflix Registration Page.
It just shows the three subscription tiers on offer — Basic with Ads, Standard, and Premium — and to see the fourth option, people need to click View All Plans in the small print.
WHAT VIDEO STREAMING OPTIONS ARE AVAILABLE FOR UK CUSTOMERS?
Price: From £4.99/month (with ads) or £6.99/month (without ads).
Price: £8.99 per month OR £79 per year
- Jack Ryan from Tom Clancy
Price: £6.99 per month
- Ted Lasso
- For all mankind
Price: £7.99 per month OR £79.90 per year
- The Mandalorian
- The Simpsons
Price: from £9.99 per month
- Game of Thrones
Price: £4.99 per month
- Keeping up with the Kardashians
- Made in Chelsea
Price: £5.99 per month
- spitting image
- Midsomer murders
Prices are current as of January 2023.