Once the streaming titan all others looked up to, Netflix’s subscription numbers have been in decline. That’s due to a number of reasons, from the change in pandemic viewing habits to the cost of living crisis. Primarily, it has been because of rival competition like Disney+, Paramount+, Hulu, HBO Max, Amazon Prime and more. This has seen the company roll out a range of initiatives including price increases. However, Netflix price cuts are now being explored in certain countries.
As reported by Engadget, Netflix has slashed prices in more than 30 countries. Not its main markets like the US or UK – where they’ve gone up – but smaller markets it is trying to stimulate. The Middle East (Yemen, Jordan, Libya and Iran), Sub-Saharan Africa (Kenya), Europe (Croatia, Slovenia and Bulgaria), Latin America (Nicaragua, Ecuador and Venezuela) and Asia (Malaysia, Indonesia, Thailand and the Philippines), have seen Netflix price cuts of almost 50%.
The idea that price reductions might bring in more customers isn’t anything new, but it has to be carefully balanced to improve Netflix’s bottom line. Just because you’ve brought new viewers on board doesn’t mean to say that profits will go up.
Last year, as customers left in droves because paying for a TV streaming service is less important than heating or food, Netflix did introduce an ad-supported option. The US, UK, Australia, Brazil, Canada, France, Germany, Italy, Japan, Mexico, South Korea and Spain, got a “Basic with Ads” plan for $7 USD. With this, commercials are introduced every hour for up to five minutes, spilt into small segments before and during shows. Plus you’re limited to 720p/HD resolution.
Another avenue Netflix is exploring is a monthly fee to share login details. This would allow customers to share their account with others outside their home. Trialled in several Latin American countries, the fee has been rolled out to Canada and New Zealand for $8, in Portugal it is €4 and €6 in Spain.
Whether this will have the desired effect remains to be seen. Of late, Netflix has cancelled numerous shows to fans’ dismay. These have included 1899, Inside Job; Uncoupled, Warrior Nun; Hot Skull, Juvenile Justice and many more.
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