Faced With Fierce Competition, Netflix Launches A Wave Of Price Cuts In 100 Countries

Trade Algo reported that the streaming service was lowering its subscription fees in more than 100 countries, Netflix stock fell as much as 5% on Thursday.

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The price reductions go against Netflix's long-standing pattern of gradually boosting pricing and come as the business faces a flurry of competition from other streaming services.

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According to Amphere Analysis, more than 10 million subscribers—or approximately 4% of the 230 million—will be impacted by Netflix's pricing reductions. Depending on the streaming tier, some price reductions will equal a 50% discount.

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The lower Netflix costs have an effect on a number of nations, including Yemen, Libya, Kenya, Ecuador, and Venezuela. In neither the US nor Europe are any of the price reductions occurring.

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In response to the Trade Algo report, Netflix issued a statement that read, "We can confirm that we are revising the pricing of our plans in select countries. We're always exploring ways to improve our members' experience."

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The price reductions come as Netflix tries to stop people from sharing passwords since, according to its estimates, more than 100 million households around the world do so in order to avoid having to pay for the service. It also comes as the streaming service tries to provide its subscriber base more reasonably priced options, with the recent introduction of an advertising-based subscription that costs just $7 per month in the US.

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A number of recently launched streaming services, such as Paramount+, Discovery+, and Peacock, as well as more established competitors like Hulu, HBO Max, Amazon Prime, and Disney+ have forced Netflix to overhaul its subscription strategy.