The world market leader in streaming faces increasing competition from other providers. He also decides to tackle account sharing.
Good news for the wallets of many subscribers to the Netflix streaming service. The SVOD market leader is launching a price-cutting policy in around thirty countries, according to the Wall Street Journal. According to reputable American media, the company is trying to consolidate its position in an increasingly competitive market where players like Disney and Amazon are constantly gaining strength.
The countries involved are diverse, from sub-Saharan Africa to Latin America and the Middle East. Some countries in Europe are also affected, for example Croatia, Slovenia and Bulgaria. In these countries, the reduction sometimes approaches halving the original cost of the tariffs. France is not affected (for the time being?).
against a current
As John Hudolik, media analyst at UBS Group AG, explains, Netflix is getting involved in unexpected ways. “(This change) definitely goes against recent trends, not just for Netflix, but for the entire streaming industry,” he explained. And for good reason, Netflix recently introduced a new policy to reclaim as much revenue as possible by charging for use outside of the home in certain countries. An effort designed to fund the original production and recoup the company’s billions spent on the content. At the same time, she is rolling out a low-cost version with advertising for smaller wallets.
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This sudden change of course – a month ago the company management spoke of rising prices – can be explained by Netflix’s position. Today, the company faces increasing competition from other players. “We know subscribers have never had so many choices when it comes to entertainment,” said a spokesman for the platform.
However, this isn’t the first time the SVOD service has adjusted its prices. Overall, it tries to adapt to the realities of different local markets and to better reflect the purchasing power of local people. Netflix, for example, lowered its prices in India in 2021 to more easily establish itself in this crucial market of 1.4 billion potential users.