The online streaming giant Netflix has lowered its subscription cost in more than 100 countries which comprises mostly lower-income regions where the company has fewer customers.
The regions where the price cuts into force are Middle Eastern countries, like Iran, Libya, Jordan, and Yemen; European countries including Croatia, Slovenia, and Bulgaria; and Latin America.According to reports, the reduction rate varies from country to country, but discounts for the basic tier fall between 20% to 60%.
The price of the Netflix basic subscription plan will be dropping the most with about a 50% decline. Other tiers will go through a cut of 17% to 25%.
Unfortunately, the discount is not applicable for those living in the United States or India. company is aiming to lower the prices in countries that account for a small percentage of its subscriber base. Netflix has already reduced prices in India and a few markets in Southeast Asia due to slow growth.
Company has been offering its streaming service for 16 years now but it has rarely decreased its plan prices. A lot has changed in the video streaming space in the past few months as many of the major players increased their prices due to the rising operation cost and fierce competition.
Netflix’s Co-Chief Executive, Greg Peters also hinted during a January earnings call that the company is looking out for markets where they can raise rates to support ongoing content expenditures. He further added that Netflix also has a chance to get new customers in markets where it doesn’t currently hold a dominant position.
Netflix operates in over 190 countries and has been looking to grow its share in newer international regions as the U.S. and Canada markets saturate.
Streaming giants have lately been raising prices to capture more revenue from a business which is extremely expensive to roll out. Some of them, including Netflix have also introduced lower-priced, ad-supported plans to reach more cost-conscious customers.
In a statement given on Thursday Company said that they are always exploring ways to improve their members’ experience. It is also confirmed that they are indeed updating the pricing of their plans in certain countries.
Netflix has over 230 million subscribers worldwide but it has been striving to gain a foothold in the Asian and African market.
It laid out plans earlier this month to crack down on password sharing for accounts on its streaming platform.The new rule will compel subscribers to pay extra if other users living outside of their primary household will make an attempt to access their Netflix account.
