(CNN) — Netflix decided to lower the prices of its plans in some countries with the aim of maintaining the growth of subscribers amid fierce competition and a contraction in consumer spending.
Shares of Netflix fell nearly 5% on Thursday, underperforming the broader market and setting it on track for its worst day in more than two months.
Last year, the streaming industry experienced intense competition as the pandemic-induced boom faded and as consumers cut spending fearing a potential recession, forcing companies to rethink their strategies.
According to The Wall Street Journal, which first reported the news, the price cuts occurred in some countries in the Middle East, sub-Saharan Africa, Latin America and Asia.
The cuts apply to certain tiers of Netflix in those markets; in some cases, the cost of a subscription was cut in half, the Journal reported.
Netflix, which operates in more than 190 countries, is looking to increase its share in new international regions as markets in the United States and Canada become saturated. Earlier this month, it laid out plans to crack down on password sharing on its platform.
The company added about 7.6 million subscribers in the fourth quarter after losing subscribers in the first half of 2022 due to growth from rivals like Paramount+ and Disney+.
But the average membership income declined in all regions in the last three months of 2022.
“We are always exploring ways to improve the experience for our users. We can confirm that we are updating the prices of our plans in certain countries,” a company spokesperson said.
The spokesperson did not provide further details about the price cuts.
