Netflix has announced price cuts for certain subscription plans in various regions, including Asia, Europe, Latin America, sub-Saharan Africa, and the Middle East. The move comes amid rising living costs and increased competition from rival streaming services. While some subscription charges have been reduced by half in certain countries such as Malaysia, Indonesia, Thailand, the Philippines, Croatia, Venezuela, Kenya, and Iran, the company did not specify which plans would be affected.
In a statement to the BBC, a Netflix spokesperson said, "Members have never had more choices when it comes to entertainment," indicating the company's focus on improving the overall user experience. However, the company's shares closed 3.4% lower in New York on Thursday after the Wall Street Journal first reported the story.
Netflix, which operates in over 190 countries, has faced stiff competition from streaming rivals like Amazon, HBO, and Disney. In response, the company launched a less expensive streaming option with adverts and cut hundreds of jobs to grow its market share in the increasingly competitive industry.
The company's co-chief executive, Greg Peters, outlined plans to attract more subscribers in January, saying, "We want to make that spectrum even wider as we seek to serve more members around the world and trying to deliver appropriate value at those different price points."
Besides cutting prices, Netflix is also cracking down on password sharing, with new limits introduced in more countries earlier this month. Customers will now have to pay an extra fee if they want to share their subscription with friends and family who do not live with them.
In conclusion, Netflix's move to lower prices is a significant step in the company's strategy to attract and retain more subscribers. With increased competition and rising living costs, customers will appreciate the cost savings, while the company will benefit from an expanded user base.
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