Netflix CUTS prices in more than 30 countries in a desperate attempt to attract more subscribers
- Netflix cuts prices in over three dozen countries including Croatia and Slovenia
- The decision is a tactic to boost sign-ups in places with low subscriber numbers
- It’s been finding ways to increase revenue – such as its ban on password sharing
Netflix has slashed its prices in more than 30 countries in a desperate attempt to attract more subscribers in underperforming markets.
European countries such as Croatia, Slovenia and Bulgaria – but not the UK – benefit from cuts to various Netflix tier options.
Prices have also been reduced in Middle Eastern countries including Yemen, Jordan and Iran and African countries such as Kenya.
It’s believed the price reductions are an attempt to attract subscribers in markets where numbers are underwhelming.
Netflix has already been trying to find ways to boost revenue, such as its controversial ban on password sharing.
Netflix’s cuts apply to certain tiers in more than three dozen markets – in some cases halving the cost of a subscription, according to a report (file photo)
Ultimately, Netflix’s price cuts could result in more revenue from nations that lag behind the strongest markets such as North America and Western Europe.
Netflix subscribers by region in 2023
North America – 77 million
Latin America – 25 million
Sub-Saharan Africa – 4 million
Middle East and North Africa – 8 million
Western Europe – 48 million
Eastern Europe – 9 million
Asia Pacific – 28 million
Source: Digital TV Research
But rival services including Disney+, HBO Max and Paramount+ are also expanding overseas – forcing Netflix to make some attractive offers.
‘It definitely goes against the recent trends not just for Netflix, but for the broader streaming industry,’ John Hodulik, a media and entertainment analyst at UBS Group AG, told the Wall Street Journal.
‘Some of these cuts on a percentage basis are substantial.’
The cuts apply to ‘certain tiers’ and in some cases the cost of a subscription has been halved, according to the WSJ.
In all, there are more than 36 countries that have received price cuts, which also include Latin American nations Nicaragua, Ecuador, and Venezuela, and Asian nations Malaysia, Indonesia, Thailand and the Philippines.
MailOnline has contacted Netflix for comment.
Netflix, which streams in more than 190 countries, has previously taken steps to boost usage in Africa, where it only has around 1.5 million subscribers – a fraction of the 17 million in the UK and 74 million in North America.
The streaming giant previously launched a free subscription plan for users in Kenya with an Android phone, albeit with a limited amount of content.
Netflix launched a free subscription plan for users in Kenya with an Android phone, but with a reduced amount of content
Greg Peters, Netflix’s co-CEO, hinted during the company’s earning’s call last month that it could lower prices where user numbers aren’t strong.
Netflix’s password sharing ban explained: Everything you need to know about the plan to stop ‘freeloaders’ – READ MORE
Under new rules, people watching Netflix using someone else’s account will have to create their own logins and pay for their own accounts as soon as March
‘There’s a bunch of people around the world in countries where we’re not deeply penetrated, and we have more opportunities to go attract them,’ he said.
At the time, Netflix revealed it added 7.7 million subscribers in the three months from October to December, although it suffered its first subscriber losses in 2022.
What’s more, its net profit plunged 91 per cent to $55.3 million over the course of 12 months.
Its two major attempts to reverse its dwindling fortunes have been the launch of a new tier that shows adverts and a crackdown on password sharing.
Under new rules, people watching Netflix using someone else’s account will have to create their own logins and pay for their own accounts as soon as March.
Alternatively, those who still want to share an account with people in a different home will have to sign up to ‘paid sharing’ at a cost of a few extra pounds a month.
Password sharing is a habit adopted by Netflix users of distributing their password to other people who live outside their household.
This lets these so called ‘freeloaders’ access their account, create their own profile and watch films and TV shows without paying a penny.
‘We’ve got folks that are watching Netflix, who aren’t paying us as part of basically borrowing somebody else’s credentials,’ Peters said in January.
Netflix co-CEO Greg Peters (pictured) hinted during the company’s January earning’s call that it could lower prices where user numbers aren’t strong
Netflix is directing new users towards its £4.99 subscription tier ‘Basic with adverts’, which was rolled out from November
‘Our goal is over this year to basically work through that situation and convert many of those folks to be paid accounts or to have the account owner to pay for them to get enough subscription.
‘But either way, we’re seeking to sort of monetize the viewing value that we’re delivering.’
Netflix now has four subscription tiers – Basic with adverts (£4.99 per month), Basic (£6.99), Standard (£10.99) and Premium (£15.99).
As the name suggests, Basic with adverts is the only Netflix tier that shows commercials during films and TV shows, which is why it’s at a lower price than the others.
Interestingly, new users appear to be encouraged to opt for Basic with adverts when they’re directed to Netflix’s sign-up page.
It just shows three subscription tiers on offer – Basic with adverts, Standard and Premium – and to see the fourth option people need to click on ‘See all plans’ in the small print.
WHAT ARE THE VIDEO STREAMING OPTIONS AVAILABLE TO UK CUSTOMERS?
Price: From £4.99 a month (with ads) or £6.99 a month (without ads)
- Squid Game
Price: £8.99 per month OR £79 per year
- Tom Clancy’s Jack Ryan
- The Boys
Price: £6.99 a month
- Ted Lasso
- For All Mankind
Price: £7.99 a month OR £79.90 a year
- The Mandalorian
- The Simpsons
Price: From £9.99 a month
- Game of Thrones
Price: £4.99 a month
- Keeping up with the Kardashians
- Made in Chelsea
Price: £5.99 a month
- Spitting Image
- Midsomer Murders
Prices correct as of January 2023
Source: Read Full Article