Netflix is cutting its prices in several of its smaller markets.
FILE - A Netflix sign is photographed outside its office building in Los Angeles, Wednesday, April 20, 2022. Netflix is cutting its prices in several of its smaller markets, Friday, Feb. 24, 2023, in the latest twist on the video streaming services efforts to keep its recently revived subscriber growth rolling amid stiffer competition and inflation pressures that pushing more households to curb their discretionary spending.
Netflix isn't changing its prices in any of its largest markets, including the U.S., where it has been regularly increasing its rates during the past four years to help offset the cost of an programming lineup that includes popular series such as “The Crown" and “Stranger Things.” Those factors contributed to Netflix losing nearly 1.2 million subscribers during the first half of last year, prompting the company to introduce an ad-supported option of its service t— less than half the price of its most popular plan.
In that same call, Peters also indicated that Netflix sees little need to drop prices in markets, such as the U.S., where its service already proved its value to long-time subscribers. “We think of ourselves as a non-substitutable good," Peters said.
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