In recent weeks, Netflix lowers prices in 100+ territories as scrutiny grows over password-sharing rules. This development comes after the company has increased scrutiny over password-sharing rules. The countries that saw a decrease in Netflix subscription prices were Bulgaria, Croatia, Ecuador, Egypt, Indonesia, Iran, Jordan, Kenya, Libya, Malaysia, Nicaragua, the Philippines, Slovenia, Thailand, Venezuela, Vietnam, Yemen, and others.
The discount offered by Netflix for basic tier subscription plans varies from 20% to 60% the research and analytics firm Ampere Analysis reported. The firm also noted that the price drop has affected around 4% of Netflix’s user base which includes over 10 million people.
Netflix Malaysia announced via Twitter, informed users that the streaming service will be decreasing the subscription prices in the country. The tweet read, “Starting today, our Basic Plan in Malaysia is now RM28 per month for both new and existing members”.
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The move came after Netflix started making more stringent rules for password-sharing activities on the platform. Recently, Netflix started charging customers for sharing their passwords with others. Many users have criticized the policy introduced by Netflix, which was also implemented in Canada, Portugal, New Zealand, and Spain. The rule is expected to roll out in other countries soon. So far, Netflix is the only streaming platform that charges its users for password-sharing.
Following the implementation of the new password-sharing rules, Netflix phased backlash from the users, and a threat of losing the user base, this is one of the prime reasons for the latest price drops in the company’s subscription fees.
Another strong reason why Netflix is dropping the subscription fees can be to compete with other popular streaming services such as Amazon Prime Video, Paramount+, Disney+, Hulu, and Apple TV. These are some of the streaming services that have recently increased their subscription charges, Netflix may want to grab this opportunity.
However, this is not a new practice for Netflix, as the company has a history of lowering prices to lure more customers. Back in 2021, Netflix dropped prices from 18% to 60.1% in India for their monthly subscription plans.
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The fact that Netflix lowers prices in 100+ territories as scrutiny grows over password-sharing rules comes as a surprise to many, however, a little deep dive into the company’s history and marketing techniques makes it much less surprising. It remains to be seen how profitable these price cuts turn out to be for Netflix.
Source: Ampere Analysis