Netflix reduces subscription prices by 60%: Know the reason
In a rather surprising move, streaming giant Netflix has cut down subscription prices by up to 60% in over 30 countries, including Malaysia, Thailand, and the Philippines. However, India does not come under the list yet. The company has been facing strong competition and the latest move to slash prices could prove helpful in boosting its subscriber growth.
Why does this story matter?
While streaming services such as Apple TV+ and Disney+, have decided to hike subscription rates, Netflix has decided to do the opposite. Given the growing number of streaming options that are now available to users, the company appears to shift its focus to strengthening its user base. Netflix currently has over 230 million subscribers worldwide.
The subscription fares have been slashed in these countries
The subscription prices have been cut in certain parts of the Middle East, Sub-Saharan Africa, Europe, Latin America, and Asia. The fees have been reduced in over 30 countries according to Wall Street Journal. The list also includes Vietnam, Indonesia, Egypt, Yemen, Malaysia, Jordan, Libya, Iran, Kenya, Croatia, Slovenia, Bulgaria, Nicaragua, Ecuador, Venezuela, Malaysia, Thailand, and the Philippines.
What is the reason behind the reduction in subscription fares?
Netflix recently introduced "paid sharing" where customers will be charged a monthly fee in order to share their login credentials with users outside their homes. This was not well received by some users. The latest price cut significantly lowers the cost of enjoying Netflix and could help onboard new customers. It will also help the streaming company combat competition in several markets.
Price drop affects more than 4% of Netflix's subscriber base
The reduction in Netflix's subscription plan varies from country to country, but discounts for the basic tier range between 20% and 60%, according to a report by Ampere Analysis. It is estimated that the price drop affects more than 4% of Netflix's subscriber base. The reduced rates are applicable to existing users as well as new subscribers.
Prices have not been slashed in India as yet
The prices of Netflix's subscription plans have not been reduced in India as yet. Talking about the currently available subscription plans available in the country, there are four categories: Mobile, Basic, Standard, and Premium. The video quality, resolution, and number of devices supported vary for each segment. The prices start at Rs. 149 (Mobile) and go up to Rs. 649 (Premium).
