Netflix is cutting prices in some countries to get more people to sign up.
Netflix said that it has lowered the prices of its subscription plans in some countries. The streaming giant wants to keep adding subscribers even though there is a lot of competition and people aren’t spending as much money as they used to.
The stock dropped almost 5%, which was worse than the market as a whole and put it on track for its worst day in more than two months.
In the streaming industry, there has been a lot of competition over the past year. This is because the boom caused by the pandemic is fading, and people are spending less because they are afraid of a possible recession. This has forced companies to rethink their strategies.
The price cuts happened in some countries in the Middle East, sub-Saharan Africa, Latin America, and Asia, according to the Wall Street Journal, which was the first to report the news.
The cuts affect certain levels of Netflix in those markets. In some cases, the Journal said, the price of a subscription was cut in half.
Netflix is available in more than 190 countries, and as the U.S. and Canadian markets get full, the company has been trying to grow its share in other countries. It announced plans earlier this month to make it harder for people to share passwords for accounts on its streaming platform.
In the fourth quarter, the company gained about 7.6 million new customers.