Netflix shares sank more than 6 per cent after the streaming company said it would cut subscription prices for dozens of countries in emerging markets as it grapples with how to gain market share around the world.
Pricing plans in “certain countries” in Africa, Asia, the Middle East, and eastern Europe would be affected, the company confirmed in an email to the Financial Times.
Co-chief executive Greg Peters told analysts on an earnings call last month that the company must consider “the pricing question” when it comes to capturing consumers, particularly in its smaller markets he described as “not deeply penetrated”.
“We want to make that spectrum even wider as we seek to serve more members around the world and trying to deliver appropriate value at those different price points,” he said.
The company did not name the US or UK as countries were subscribers would enjoy any price relief.
Netflix most recently increased prices in the US in mid-January. The streaming group is also planning to crack down on password sharing, and has started doing so in Canada, New Zealand, Portugal, and Spain after trialing approaches in Latin America.
Netflix shares fell as much as 6.1 per cent on Thursday, but recovered some ground to be 5.2 per cent lower during lunchtime trading in New York and remain one of the worst performers in the Nasdaq 100 index.
The most recent price cuts affect more than 30 countries, including Iran, Kenya, Croatia, Malaysia and Indonesia, according to the Wall Street Journal, which first reported the story on Thursday.
