Netflix (NFLX) is cutting its subscription costs in select countries as streaming competition continues to ramp up.
The company cut the price on certain tiers of its service across more than 30 countries in recent weeks including Yemen, Jordan, Iran, Kenya, Croatia, Venezuela, Indonesia, among others. The Wall Street Journal earlier reported the changes.
"We're always exploring ways to improve our members' experience. We can confirm that we are updating the pricing of our plans in certain countries," a Netflix spokesperson told Yahoo Finance.
The price cuts vary by country, but Wells Fargo estimated most territories are seeing prices fall by 20% to 45% with data from Ampere Analytics suggesting the change could affect more than 10 million subscribers, or approximately 4% of the company's overall subscriber base.
The U.S. and Western Europe, where average revenue per membership is much higher, were not impacted by the changes.
Interestingly, Netflix gave no indication of the price cuts in its latest quarterly report.
The company said 2022 began with a "bumpy start but a brighter finish," adding, "We believe we have a clear path to reaccelerate our revenue growth" in 2023.
The company has been aggressive in expanding overseas as it looks to boost profitability. The streamer currently operates in more than 190 countries and territories.
Netflix shares were down more than 4% in early trade on Thursday following the news.
Streaming giants have adjusted pricing and strategies in recent months in order to adjust to Wall Street's new profitability mandate.
Notably, Netflix is in the midst of a controversial password sharing crackdown, which has angered users as prices continue to balloon. The cost of Netflix's standard plan is currently $15.49 a month in the U.S. with its premium plan reaching as much as $19.99 a month — one of the most expensive ad-free subscriptions on the market.
Other ad-free subscription costs include Hulu's $14.99/month plan, Disney+'s $10.99/month tier, HBO Max's $15.99/month offering, and Paramount+'s $9.99/month option.
Apple TV+ is by far the cheapest at just $6.99/month, but the company boasts a fraction of the shows with a reported content investment of just $6.5 billion. Netflix spends about $17 billion on content annually.
Consumers also seem to have streaming fatigue, a sign that what worked before might not work today.
According to UBS Evidence Lab's fourth annual video streaming survey, which polled 1,200 Americans on their video viewing habits, Netflix (NFLX), Apple TV+ (AAPL), Amazon Prime Video (AMZN), and Hulu (DIS) all saw iPhone penetration levels dip since 2020, when pandemic restrictions ballooned the value of streaming companies across the board.
Still, survey respondents saw Netflix as the "best value for money" amid a slew of high-profile and record-breaking content releases, including "Glass Onion," "Troll," "All Quiet on the Western Front," "My Name is Vendetta," and "Wednesday."
Alexandra is a Senior Entertainment and Media Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
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