Netflix has introduced a new cost-saving measure in over 30 countries to attract more subscribers amid its password-sharing crackdown. According to The Wall Street Journal, the streaming service has reduced prices by up to 50% in certain countries in the Middle East, Asia, Europe, and Latin America. This move comes as competition in the streaming industry continues to grow.
The streaming landscape has seen prices rise, but Netflix’s recent move is set to shake things up – even within the company. Earlier this year, Netflix’s co-Chief Executive, Greg Peters, revealed plans to increase prices. This would have caused issues between the streamer and users, especially given Netflix’s efforts to deter password sharing. While the lowered prices do not impact larger markets such as the U.S. and Canada (which already have a cheaper ad-supported tier), they allow Netflix to experiment with different pricing strategies.
According to The Wall Street Journal, a Netflix representative stated that the company is aware that consumers have many entertainment options and intends to offer an experience surpassing their expectations. Additionally, co-Chief Executive Greg Peters referred to Netflix as a “non-substitutable good.” In addition to providing more affordable prices in relevant countries, the company plans to invest further in its content offerings.
Netflix has expanded its efforts to combat password sharing
Netflix has recently introduced a new anti-password sharing protocol in some countries. The new policy allows users living in the same house to share a password, as long as they authorize the devices they use for Netflix. However, those sharing an account outside of the household must subscribe independently to continue using the service. They can either start a new account or transfer their profile over. The main account holder can also pay to add a member as an alternative to a separate subscription. Any unauthorized devices caught using the account outside the primary household will be barred from the service and prompted to create their own account.
Despite Netflix’s efforts to crack down on password sharing, the streaming giant continues to face the challenge of retaining subscribers, partly due to the frequent cancellations of its original content. While it’s understandable to cancel a show with low viewership compared to hits like Stranger Things and You, Netflix has also developed a reputation for abruptly ending shows after only one or two seasons, including recent examples like Inside Job, 1899, and Warrior Nun. This has left viewers hesitant to invest in shows that may be canceled before their time.