Netflix has made a surprise move by reducing subscription prices in over 100 territories amidst growing scrutiny over its password-sharing rules. The announcement comes at a time when customers are contemplating which streaming services to keep amid price hikes. Countries that have seen a drop in prices include Egypt, Yemen, Jordan, Libya, Iran, Kenya, Croatia, Slovenia, Bulgaria, Nicaragua, Ecuador, Venezuela, Malaysia, Indonesia, Vietnam, Thailand, and the Philippines.
The discount offered by Netflix varies from country to country, with discounts for the basic tier ranging between 20% and 60%, according to Ampere Analysis. The research and analytics firm estimates that the price drop will affect more than 4% of Netflix’s subscriber base, which is over 10 million people.
Netflix’s Twitter account in Malaysia shared the good news with its local customers, stating, “Starting today, our Basic Plan in Malaysia is now RM28 per month for both new and existing members,” which is a reduction from the previous cost of RM35 per month.
The price decrease is somewhat surprising given the current industry trend, but not entirely unexpected. Netflix has faced criticism recently for rolling out password-sharing rules to Canada, New Zealand, Portugal, and Spain, with plans to roll out the changes to more countries in the coming months. This has sparked a wave of subscriber complaints across social media platforms, with Netflix being the only streamer to charge its customers a fee for sharing their passwords. It is possible that Netflix is lowering prices to redeem itself.
Another reason for the price decrease could be to compete with rival streaming services. Paramount+, Apple TV+, Disney+, and Hulu are the most recent Netflix competitors to increase their subscription prices, while Peacock recently removed its free tier as an option for new customers.
“We know members have never had more choices when it comes to entertainment,” a Netflix spokesperson told The Wall Street Journal. The spokesperson added that Netflix is committed to delivering an experience that exceeds expectations.
This isn’t the first time that Netflix has lowered the price of its service to win over subscribers. In 2021, the streamer made cuts to the subscription price in India (noted by TechCrunch), reducing each monthly subscription plan’s price by a minimum of 18% and up to 60.1%. Netflix’s latest move to lower prices could potentially attract more subscribers and retain its current customer base, as the streaming market continues to become more competitive.