Netflix said it has slashed prices for its subscription plans in some countries as the streaming giant seeks to maintain subscriber growth amid fierce competition and tight consumer spending.
The stock fell almost 5%, underperforming the broader market and heading for its worst day in more than two months.
The past year has seen intense competition in the streaming industry as the pandemic-driven boom wanes and consumers cut spending for fear of a possible recession, forcing companies to rethink their strategies.
According to the Wall Street Journal, which first reported the news, the price cuts took place in some countries in the Middle East, sub-Saharan Africa, Latin America and Asia.
The discounts apply to certain tiers of Netflix in those markets – in some cases the cost of a subscription has been cut in half, the Journal reported.
Netflix, which operates in more than 190 countries, is looking to increase its share in new international regions as the US and Canadian markets saturate. Earlier this month, it outlined plans to crack down on password sharing for accounts on its streaming platform.
The company added about 7.6 million subscribers in the fourth quarter.