The stock fell nearly 5 percent, underperforming the broader
market and on course for its worst day in more than two months.
The past year has seen intense competition in the streaming
industry as a pandemic-driven boom fades and consumers curtail spending over
fears of a possible recession, forcing companies to rethink their strategies.
According to the Wall Street Journal, which first reported
the news, the price cuts took place in some countries in the Middle East,
sub-Saharan African, Latin America and Asia.
The cuts apply to certain tiers of Netflix in those markets
- in some cases, the cost of a subscription was halved, the Journal reported.
Netflix, which operates in over 190 countries, has been
looking to grow its share in newer international regions as the U.S. and Canada
markets saturate. Earlier this month, it laid out plans to crack down on
password sharing for accounts on its streaming platform.
The company added about 7.6 million subscribers in the
fourth quarter after bleeding subscribers in the first half of 2022 as rivals
such as Paramount+ and Disney+ raked in subscribers.
But average revenue per membership declined across regions
in the last three months of 2022.
"We're always exploring ways to improve our members'
experience. We can confirm that we are updating the pricing of our plans in
certain countries," a spokesperson for the company said.
The spokesperson did not give further details about the
price cuts. © Reuters
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