Yep, Netflix is reducing — and not increasing — its prices

Over the last few years, Netflix has been mainly in the news for all the wrong reasons. Following price hikes in January 2019 and October 2020, the streaming service again bumped its prices in the US and Canada in January 2022. Then, the company decided to start cracking down on password sharing. Unsurprisingly, these moves led Netflix to lose subscribers. Now, to arrest its declining user base, the streaming service has lowered its subscription fees by as much as 60 percent. But don’t get too happy, as you are unlikely to benefit from the price cut.

In the last week, Netflix has slashed its subscription fees in over 100 regions. Ampere Analysis claims the subscription fee reduction is between 20 and 60 percent depending on the region and the plan. In some markets, the price of the cheapest tier remains unchanged. But the lower price is limited to markets where the streaming service is still trying to gain a foothold. This includes markets like Jordan, Thailand, Bulgaria, Malaysia, Indonesia, Yemen, Bosnia, Zimbabwe, and others.

Combined, the lowered subscription price is estimated to benefit 10 million Netflix subscribers across these regions. The streaming service has over 200 million subscribers, so the lower prices will benefit just 5 percent of its total user base. The move will negatively affect Netflix’s average revenue per user (ARPU), but it should be able to make up for lower revenue with an increase in user base.

Netflix cutting its prices in developing markets is not going to impact its crackdown on password sharing. In early February 2023, the company detailed its account-sharing restrictions and expanded the policy’s rollout to Canada, New Zealand, Portugal, and Spain. These restrictions will roll out to more markets in the coming months. You can consider switching to the ad-supported tier or canceling your Netflix subscription if the new password-sharing rules are too restrictive.

Conclusion on Netflix is lowering its prices, but probably not in your country

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