Netflix Cuts Subscription Prices Across 30 Territories Worldwide
February 23, 2023
Netflix has quietly cut monthly subscription prices as much as 50% in upwards of 30 market territories around the world. The SVOD pioneer operates service in more than 190 countries and market territories.
Markets seeing a price cut include Vietnam, Indonesia, Thailand, Malaysia, Philippines, Romania, Egypt and Croatia, affecting more than 10 million subscribers, according to Ampere Analysis. The streamer’s basic subscription tier has seen the largest price drop, with most territories getting a 50% price cut, compared to around 20% for the standard tier, 17% for the premium tier and 25% for the mobile device tier.
None of the impacted markets currently offers the lower-cost, ad-supported tier, according to Ampere.
“It definitely goes against the recent trends not just for Netflix, but for the broader streaming industry,” John Hodulik, media analyst with UBS Group AG, told the Wall Street Journal. “Some of these cuts on a percentage basis are substantial.”
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The price cuts come as Netflix and its main SVOD subscribers have raised prices across its larger market segments, with Netflix now charging $20 monthly for its premium tier, which affords access up to four separate users simultaneously. HBO Max upped its single-access fee to $15.99, the highest monthly charge in the market.
Speaking on the recent fiscal call, co-CEO Greg Peters defended the price hikes, arguing Netflix has positioned itself as a “non-substitutable good” among consumers.
Peters hinted that any price cuts are aimed at jumpstarting subscriber growth in the targeted areas.
“We know members have never had more choices when it comes to entertainment,” Netflix said, alluding to the price cuts.
Netflix ended 2022 with almost 231 million global subscribers.