Streaming giant Netflix announced on Thursday that it has cut membership costs in several regions to preserve subscriber growth amid intense competition and limited consumer spending.
According to the Wall Street Journal, the price reduction took place in some countries in the Middle East, Sub-Saharan Africa, South America, and Asia.
The price of a Netflix subscription was reportedly lowered in half in certain of those markets, and the reductions apply to specific pricing tiers.
As a pandemic-driven boom fades and consumers cut spending due to recession fears, the streaming business has witnessed intense competition in the past year, forcing companies to reconsider their strategies.
Given the saturation of the U.S. and Canadian markets, Netflix has been trying to expand into emerging international regions. It announced a crackdown on streaming platform password sharing earlier this month.
Netflix added roughly 7.6 million subscribers in the fourth quarter after losing subscribers in the first half of 2022 as rivals such as Paramount+ and Disney+ gained subscribers.
Nonetheless, average revenue per membership fell across regions in the last three months of 2022.
