Netflix has decided to reduce the value of subscriptions to its packages in 30 countries. The strategy comes at a time when competition between streaming platforms is on the rise and the company is trying to keep old customers and attract new ones.
According to “The Wall Street Journal”, the change in the monthly fee will affect Middle Eastern countries, including Yemen, Jordan, Libya and Iran, as well as sub-Saharan African markets, such as Kenya. Other regions, such as Europe, such as Croatia, Slovenia and Bulgaria were also included.
In Latin America the impairment includes only Nicaragua, Ecuador and Venezuela. In Asia, Malaysia, Indonesia, Thailand and the Philippines are on the list. In some cases, the price will drop by half.
But the reduction is not very significant globally. It affects just over 10 million subscribers, or 4% of the 230 million subscribers the streaming giant had as of December 2022. Brazil is not included in that list.
One of the reasons behind the price reduction would be dollar inflation. With the dollar strengthening in markets where Netflix’s price is tied to the US currency, streaming would be redundant with a high risk of cancellation.
While the reason for the reduction in subscription values is clear, Netflix’s decision took the market by surprise, as the company went through a financial crisis last year and its goals were to increase earnings, which even resulted in a initiative to block the free account sharing scheme.
Source: Terra
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