Netflix has announced a significant reduction in subscription charges for over 100 countries, with price cuts of up to 50%. The move is aimed at increasing the company’s subscriber base in lower-income regions, where growth has been slow. The company is also looking to improve the overall experience for its members.
In a statement released on Thursday, Netflix said, “We’re always exploring ways to improve our members’ experience. We can confirm that we are updating the pricing of our plans in certain countries.” The price cuts will impact more than 10 million subscribers across Asia, the Americas, and the Middle East, with markets such as Vietnam, Indonesia, Thailand, and the Philippines set to benefit.
Independent research firm Ampere Analysis has provided further details on the price cuts. According to Ampere, the basic subscription plan will see the biggest drop, with prices decreasing by around 50%. Other tiers will see reductions of between 17% and 25%. None of the affected markets currently have access to the ad-supported offering.
Shares of the streaming giant fell by as much as 5.2% to $317.47 in New York, but had risen by 14% this year through Wednesday’s close. Netflix’s decision to lower prices in countries that account for a small percentage of its subscriber base is a calculated risk, but one that the company is willing to take in order to increase its global reach.
Streaming services have generally been raising prices in recent years, with companies looking to capture more revenue from an industry that has been expensive to roll out. However, some streaming services, including Netflix, have launched lower-priced, ad-supported plans to attract more cost-conscious customers.
Netflix’s latest move comes as the company starts to crack down on users’ ability to share passwords. The crackdown, which could result in a price increase for many customers, is aimed at reducing the number of users who share accounts, thus increasing the company’s subscriber base.