Shares of Netflix plummeted 5% last Thursday after a Wall Street Journal report that claimed that the streaming giant was cutting the price of its subscriptions in more than 100 countries.
These cuts go against the trend of Netflix in recent years, since they have been raising prices progressively year after year and now it is even impossible to share an account with other people.
The reason for this drop? The enormous competition that comes from other streaming platforms, such as the most recent case of SkyShowtime that hits the market for 3 euros.
The cuts will affect more than 10 million subscribers, that is, around 4% of the 230 million users that Netflix currently has, according to Ampher Analysis.
Other information: some cuts could mean 50% less of monthly amount, always depending on the level of subscription.
Some of the countries affected by the Netflix price drop have been Yemen, Libya, Kenya, Croatia, Ecuador and Venezuela. for now none of the reductions have reached the United States or Europe.
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“We are always exploring ways to improve the experience for our members. We can confirm that We are updating the prices of our plans in certain countries“, reveals Netflix in a statement after the WSJ report.
This cut comes at a time when Netflix is trying to end the use of account sharing, since it estimates that more than 100 million households around the world use this practice.
Added to this is the cheapest subscription with advertising, available almost everywhere in the world, for a reduced price, although it limits its total catalogue.
Netflix has had to modify its subscription model to face competition from a series of new services such as Paramount +, Discovery + and Peacock, as well as HBO Max, Amazon Prime or Disney Plus.
