Netflix Inc said on Thursday it has cut the prices of its subscription plans in some countries as the streaming giant seeks to maintain subscriber growth amid tough competition and stressed consumer spending.
The stock fell nearly 5%, underperforming the broader market and on course for its worst day in more than two months.
The past year has seen intense competition in the streaming industry as a pandemic-induced boom and consumers cut spending on fears 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 African, Latin America and Asia.
The Journal reported that the cuts applied to certain tiers of Netflix in those markets — in some cases, the cost of subscriptions was cut in half.
Netflix, which operates in more than 190 countries, is looking to grow its share of new international territories as the US and Canada markets become saturated. Earlier this month, it announced plans to crack down on the sharing of passwords for accounts on its streaming platform.