Popular streaming platform Netflix has reduced the prices of its subscription plans in several markets amidst fierce competition and constrained consumer spending.
The stock decreased by almost 5 percent, falling behind the general market and heading for its worst day in more than two months.
The streaming sector has experienced fierce competition over the past year as a pandemic-driven boom fades and customers reduce spending out of concern for a potential recession, prompting businesses to reconsider their strategy.
According to reports, the reduced prices took effect in some countries in the Middle East, sub-Saharan African, Latin America and Asia.
The cuts apply to certain tiers of Netflix in those markets – in some cases, the cost of a subscription was halved.
A Netflix spokesperson confirmed the updates in the platform’s pricing. “We’re always exploring ways to improve our members’ experience,” the spokesperson said.
Reduced Netflix subscription prices in the Middle East
Subscription prices were only reduced in select countries in the Middle East.
The streaming service’s basic plan will now cost $3.99 instead of $7.99 in Yemen, Iraq, Tunisia, Jordan, Palestine, Libya, Algeria, Lebanon, Iran, and Sudan. The regular plan will cost $7.99 instead of $9.99, and the premium plan will drop from $11.99 to $9.99.
Basic coverage in Egypt has been reduced from 120 Egyptian pounds ($3.27) to 70 pounds, standard coverage from 165 pounds to 120 pounds, and premium coverage from 200 pounds to 165 pounds.
The basic plan in Morocco has been reduced from 65 Moroccan dirhams ($6.28) to 35, the standard plan from 95 to 65, and the premium plan from 125 to 95 dirhams.
The price of subscription plans remains the same in Gulf nations like Saudi Arabia and the UAE.
Netflix, which has operations in more than 190 countries, has been attempting to increase its market share in emerging overseas markets due to strong competition in the US and Canada. It announced plans earlier this month to strictly prohibit the sharing of passwords for accounts on its streaming platform.
The company added about 7.6 million subscribers in the fourth quarter after bleeding subscribers in the first half of 2022 as rivals such as Paramount+ and Disney+ raked in subscribers.
Despite losing customers in the first half of 2022 due rivals such as Paramount+ and Disney+ raking in subscribers, Netflix finished off the year with roughly 7.6 million new subscribers.
