Netflix has announced that it will cut its subscription prices by up to 60% in 30 countries as it faces increasing competition in the streaming market. The price reduction comes as the company aims to keep its hold on the market, which has seen the emergence of several other players in recent years.
Netflix’s move to cut prices was first announced on Wednesday and applies to select subscription plans in countries including Mexico, Brazil, the Philippines, and Malaysia. The company said the price reductions would roll out in the coming weeks and would be available to new and existing subscribers.
According to reports, Netflix is expected to cut prices by as much as 40% in some countries, while other regions could see a reduction of up to 60%.
The move comes as the streaming giant faces increasing competition from rivals such as Disney+, Amazon Prime Video, and HBO Max. With each service fighting to secure a larger slice of the streaming market, Netflix is keen to stay ahead of the competition by making its service more affordable.
Netflix’s price cuts could also be a response to the global economic slowdown caused by the COVID-19 pandemic. The company may be hoping that lower prices will help retain existing subscribers and attract new ones.
Despite the price cuts, Netflix’s profits are expected to remain largely unaffected, thanks to the economies of scale it enjoys as a leading streaming service. The company currently has over 214 million subscribers globally, and its revenue for 2023 is expected to exceed $33 billion.
As Netflix continues to face increasing competition from rivals, it remains to be seen whether the price cuts will be enough to keep it ahead of the pack. However, for now, the company is betting that making its service more affordable will help attract and retain subscribers in the crowded streaming market.