What you need to know
- Netflix was seen reducing subscription plans in over 30 countries.
- The move comes after the recent CEO change in January.
- These include nations across Asia, Africa, and Latin America. The U.S. does not appear to be affected.
After seeing a significant shift in the business model late last year and a recent CEO change this year, Netflix has reportedly made several changes in subscriptions fee in several regions.
As noted by Wall Street Journal, Netflix quietly cut its tier plan changes in over 30 countries in recent weeks. Some plans are said to have seen prices cut in half, although the changes appear to vary by region.
The WSJ reports that Middle Eastern nations like Yemen, Jordan, Libya, and Iran have seen their prices reduced. Regions in Africa, such as Kenya, and Europe, such as Croatia, Slovenia, and Bulgaria, also appear to have experienced this price reduction.
The list goes on to Latin American nations — Nicaragua, Ecuador, and Venezuela, next to Asian countries involving Malaysia, Indonesia, Thailand, and the Philippines. The United States does not appear to be affected by the price cuts.
The report further indicates that the move contrasts with what Netflix's co-Chief Executive Greg Peters said during the company's January earnings call. As Peters stated, they were looking for regions where they could afford to raise the tier prices rather than decrease them.
Analysts imply this reduction in plans is against the trend that can be seen across other competitors who have been steadily raising plan prices, at least in the U.S. in recent months.
According to a Netflix spokesperson from the WSJ report, Netflix is updating the pricing of its plans in countries in order to provide an experience to users that exceeds the streaming platform's exceptions. "We know members have never had more choices when it comes to entertainment," she added.
Indeed, Netflix's recent moves seem motivated by the company's growing competition with streaming services like HBO Max, Disney+, Apple TV+, and so on. Despite Netflix being considered one of the popular services, the increased competition has pressured the service to make drastic changes. As a result, Netflix introduced a new cost-effective plan that involved users paying low in favor of watching ads, the first time it has ever happened on the platform.
The company also recently set new guidelines for accounts and started charging users for "sub-accounts" or members on the account that are not part of the same household.
