Netflix Cuts Subscription Prices in Over 100 Markets
By Movieguide® Contributor
Netflix has cut subscription prices in over 100 markets across the world in an effort to attract and maintain subscribers as they continue to compete with other streaming services.
In some markets, the streaming service has cut prices in half. For example, in Venezuela, Netflix cut its Basic plan from $7.99 to $3.99/month.
While Netflix reduced prices in countries across Asia, Latin America, Europe, the Middle East and Africa, prices will stay the same in North America and Western Europe.
“Members have never had more choices when it comes to entertainment. We’re always exploring ways to improve our members’ experience,” a Netflix representative said about the move.
Netflix gained 7.7 million new subscribers in Q4, reaching 230.75 million total subscribers around the world.
“When you think about the pricing question…we want to make that spectrum even wider as we seek to serve more members around the world in trying to deliver appropriate value at those different price points,” co-CEO Greg Peters explained. “And we’re doing a good job expanding that range… There’s a bunch of people around the world in countries where we’re not deeply penetrated, and we have more opportunities to go attract them.”
Movieguide® previously reported on Netflix’s attempts to gain subscribers:
Netflix plans to launch an ad-supported subscription option with Microsoft in early 2023 so the company can reach a broader customer base.
“We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,’” Netflix Co-CEO and Chief Content Officer Ted Sarandos said during a panel at the Cannes Lions Festival.
This announcement comes after major subscriber losses over the last two quarters. In the second quarter, Netflix lost nearly 1 million subscribers.
While this was only half the expected loss, CEO Reed Hastings explains that “our excitement is tempered by the less bad results.”
Sarandos explains, “We adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.’”
People reports that “as Netflix increases subscription prices, the platform sees an opportunity for lower subscription fees, if a patron is willing to watch ads.”
However, some content will not be eligible for additional advertising.
“Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier,” Sarandos said.
“There’s some things that don’t and we’re in conversations with the studios on, but if we launched the product today, members in the ad-tier would have a great experience,” he continued. “We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business.”
Because Netflix-created content does not go through a third party, their shows will be available on the new ad tier, including series like STRANGER THINGS, which Hasting credits for the smaller-than-expected subscriber drop.
Despite the losses, the company remains hopeful. “We’ve been through hard times before,” the company said in its shareholder letter. “We’ve built this company to be flexible and adaptable, and this will be a great test for us and our high-performance culture.”
- Content: +1Share:
- Content: +1