The platform goes so far as to halve its prices in certain markets, where competition is particularly fierce.
This is an unexpected development to say the least. While the trend until now was to increase prices to gain profitability, Netflix is lowering its subscription prices in dozens of countries, report it Wall Street Journal. In percentage, the drop can reach 50%, notes the American economic daily.
But this good news does not concern French customers, nor those of our neighboring countries. This price reduction is applied in the Middle East (in Iran or Jordan, for example), in certain countries of sub-Saharan Africa such as Kenya, but also in some European countries: the Wall Street Journal mentions in particular the examples of Croatia, Slovenia and Bulgaria.
fierce competition
“We know that our subscribers have never had so many choices in terms of entertainment and we strive to offer an experience that goes beyond their expectations,” explains the company to Wall Street Journal.
Half-word, Netflix therefore explains this price drop by the explosion of competition, which has already claimed its first victims among the platforms launched in pursuit, particularly in France. But the company, which also sees itself as “a non-substitutable good”, might maintain its price levels in countries where it believes consumers are willing to pay.
After losing subscribers for the first time in 2022, Netflix is also seeking to make a profit from the approximately 100 million Internet users who access its services without paying, using the account of a loved one. In the coming weeks, the platform should start charging French people who want to let a third party access their content.