- Netflix stock dropped 5% on Thursday after a WSJ report said the company was cutting its prices across more than 100 countries.
- The price cuts come as Netflix faces a surge in competition from various streaming platforms.
- Netflix's price cuts buck its recent trend of hiking subscription prices in the US and Europe.
Netflix stock dropped as much as 5% on Thursday after the Wall Street Journal reported that the streaming company was cutting its subscription prices in more than 100 countries.
The price cuts buck Netflix's years-long trend of incrementally raising prices, and come as the company faces a surge in competition from different streaming platforms.
Netflix's price cuts will impact more than 10 million subscribers, or about 4% of the streaming giant's 230 million subscriber base, according to Amphere Analysis. Additionally, some price cuts will amount to a 50% reduction, depending on the streaming tier.
Some countries that are impacted by the lower Netflix prices include Yemen, Libya, Kenya, Croatia, Ecuador, and Venezuela, among others. None of the price cuts are taking place in the US or Europe.
"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," Netflix said in a statement following the WSJ report.
The price cuts come as Netflix seeks to crack down on password sharing, as it estimates that more than 100 million households worldwide share a password to avoid paying for the service. It also comes as the streaming company seeks to offer more affordable options to its subscriber base, with the recent launch of an advertising-based subscription costing just $7 per month in the US.
Netflix has had to shake up its subscription model as it faces an onslaught of competition from a crop of newly launched streaming services, including Paramount+, Discovery+, and Peacock, as well as from older incumbents like Hulu, HBO Max, Amazon Prime, and Disney+.