Netflix drops prices in 100 countries, benefiting around 10m customers

Amid a general upward increase in PayTV and streaming subscription prices, Ampere Analysis is reporting that Netflix has done the opposite – cutting its price in around 100 countries. Overall, the lower price point will benefit around 10 million subscribers.

The changes don’t affect major markets like the US. According to Ampere, “the SVOD incumbent’s Basic tier will record the highest percentage drop across a large number of territories. These territories, which span Central and South America (CSA), Sub-Saharan Africa (SSA), the Middle East and North Africa (MENA), Central and Eastern Europe (CEE) and the Asia Pacific (APAC) regions will see discounts from 20% to nearly 60%, with the price drop kicking in instantly for new and existing subscribers. “

Netflix’s mobile tier, predominantly offered in markets with low fixed-line broadband penetration, will get price drops ranging between 25% and 33% in most markets, says Ampere. However, in more populous markets, such as India, Indonesia, Thailand, Malaysia, Philippines, Vietnam, Pakistan and Nigeria, the tier will not be discounted.

Among the countries receiving a discount, Netflix is offered in local currency in little more than 10. “Localised pricing serves as a key way to increase accessibility for customers, ensuring subscribers are not exposed to currency volatility, such as the particularly strong USD in 2022. Netflix’s pricing was also passively localised in Croatia at the beginning of this year when the country joined the Eurozone.”

There are three likely reasons for the price drop. The first is to combat churn in markets where consumers are tempted to drop subscriptions. The second is to make the Netflix price point more compelling vs rivals. The third is to woo new customers. Ampere said:

“While this move will have a negative average revenue per user impact, it could drive subscriber additions amongst consumers yet to take the service.”

Netflix’s price cuts come at the same time that the platform is looking to crack down on password sharing in major markets – a move that should add revenues long term.