Netflix lowers prices in some countries to attract more subscribers
On Thursday February 23, 2023, Netflix announced that it had reduced its subscriptions in certain countries in order to maintain, or even relaunch, the growth of its customer base. Netflix is indeed struggling to maintain a balance in its number of subscribers worldwide, which recently earned it a 5% drop on the stock market. This is the hardest blow against him in two years.
It is in the Middle East, in sub-Saharan Africa, in Latin America and in Asia-Pacific that the prices of Netflix subscriptions have been reduced. Sometimes the most popular formulas have even been halved.
Officially present in 190 countries, the SVoD service is constantly seeking to adapt its strategy in an increasingly competitive market. 2022 had been particularly eventful with the arrival of new players and the end of the subscription boom triggered by the Covid-19 pandemic and its periods of confinement. Also, the inflationary crisis is pushing more and more households to review their spending, sometimes to the detriment of this type of subscription.
Netflix’s growth margin in North America and some European countries is now quite low, which explains why its expansion strategy is focused on emerging countries. In nations where Netflix subscriptions are largely democratized, it is by fighting against account sharing that the platform hopes to develop its clientele.
Overall, Netflix ended 2022 quite well after suffering competition from Disney+, HBO Max and Paramount+. Over the last quarter, the platform had even managed to recruit 7.6 million subscribers. However, its average revenue per subscriber (a figure scrutinized closely by shareholders) had fallen in certain regions, the fault in particular of aggressive pricing policies.
As we know, Netflix reserves the right to modulate its packages. We discover that price reductions are also possible when his strategy tells him that this is the right way to attract subscribers. With us, Netflix is trying to increase its recruitment by launching a €5.99/month package with advertising as a call offer. This package limits viewing to one screen in HD and does not provide the ability to download for offline viewing.
Netflix is a paid subscription application and service that provides access to an online library of several thousand films, series, documentaries, shows and TV shows.
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Video – Leisure
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Android, Online service All Internet browsers, Windows 10/11, iOS iPhone / iPad