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Netflix has lowered its subscription prices in more than 100 markets around the world. The price drop varies from country to country, with the Basic tier getting the biggest cut. This comes amid user backlash over the streaming giant’s new paid password-sharing system.
According to research firm Ampere Analysis, this price cut is effective immediately. New Netflix subscribers will get the updated prices while existing subscribers will see a drop in their monthly bill from the next billing cycle. Depending on the market (full list below), prices have dropped up to almost 60 percent for the Basic tier. Users in some regions are also getting a price reduction for the Standard, Premium, and Mobile plans. The changes bring the Standard tier at the price of Basic for many of them. This upgrades their streaming resolution from 720p to 1080p and allows two concurrent streams without any price increase.
It’s unclear what percentage of Netflix’s current user base (more than 230 million as of Q4 2022) will be affected by this price drop. But the research firm states the streaming service is getting cheaper in ten markets where it offers localized prices — Indonesia, Thailand, Malaysia, Philippines, Egypt, Ecuador, Vietnam, Morocco, Croatia, and Kenya — and they account for over ten million subscribers. That is more than four percent of its global user base from those ten markets alone. Going by this, Netflix seems to be willing to take a substantial hit to its average revenue per user (ARPU) in the coming months to avoid losing subscribers.
It may be a strategic plan to win over subscribers who are unhappy with the new password-sharing rule. Netflix recently started making users pay for sharing passwords with friends and family. The idea was to block the use of the same account by multiple users, which affects the company’s revenue. But unsurprisingly, people aren’t liking this idea. Many users have threatened to switch to other streaming services. Netflix may now be trying to persuade them to stay by making itself more affordable. Time will tell whether it succeeds. The crackdown on password sharing hasn’t rolled out globally yet, so we’ll have to wait and watch.
Full list of markets where Netflix has lowered its subscription prices
Afghanistan, Albania, Algeria, Angola, Bangladesh, Belize, Benin, Bhutan, Bolivia, Bosnia & Herzegovina, Botswana, British Indian Ocean Territory, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Christmas Island, Comoros, Congo – Brazzaville, Congo – Kinshasa, Côte d’Ivoire, Croatia, Cuba, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, Gambia, Ghana, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Indonesia, Iraq, Jamaica, Jordan, Kenya, Kiribati, Laos, Lebanon, Lesotho, Liberia, Libya, Macedonia, Madagascar, Malawi, Malaysia, Mali, Mauritania, Mauritius, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, Nicaragua, Niger, Palestinian Territories, Panama, Papua New Guinea, Paraguay, Philippines, Pitcairn Islands, Romania, Rwanda, Samoa, São Tomé & Príncipe, Senegal, Serbia, Seychelles, Sierra Leone, Slovenia, Solomon Islands, Somalia, South Sudan, Sri Lanka, St. Barthélemy, St. Helena, St. Lucia, St. Martin, St. Vincent & Grenadines, Sudan, Suriname, Swaziland, Tanzania, Thailand, Timor-Leste, Togo, Tonga, Tunisia, Tuvalu, Uganda, Vanuatu, Venezuela, Vietnam, Wallis & Futuna, Yemen, Zambia, and Zimbabwe.