The Philippines, Vietnam, and Malaysia will see no discount on the “Premium” (here, $19.99/month) tier all other discounted markets will receive a pricing decrease of 17-43 percent. In the Philippines, the discount will be 13 percent elsewhere, it will go as high as nearly 50 percent. Not all “Standard” ( here, the popular $15.49 plan) tier subs in the same markets, like Vietnam and Malaysia, will get a discount, but many will, the firm wrote. The Netflix spokesperson we spoke to for this story declined to comment on many of the specifics reported by Ampere, including pretty much everything below. “Some of it is economically driven and so part of what we’re trying to do is make sure we are being responsive to that and finding the right price points, whether in terms of an individual account or an extra-member affordance,” Netflix’s new co-CEO Greg Peters said at the time. Netflix maintains that more than 100 million households currently share accounts and thus, in its eyes, are not monetized properly. Based on trials in Latin America, the company expects some subscribers will initially cancel the service as a knee-jerk reaction, but overall revenue growth will soon follow. “While this move will have a negative average revenue per user (ARPU) impact on Netflix in these emerging markets, it could drive subscriber additions amongst consumers yet to take the service.”Īs part of its fourth-quarter earnings announcement, Netflix said it will roll out “paid sharing” later this quarter (details, including pricing, which will vary by region, is still to come). “With Netflix reportedly planning to charge consumers extra to have additional ‘out of home’ users access their account, these price drops potentially cancel out the extra cost to subscribers currently sharing accounts,” Ampere wrote. “The Hatchet Wielding Hitchhiker” on Netflix Courtesy of Netflix At the end of 2022, Netflix reported having 230.75 million global paid subscribers that included the new ad-supported option. Much like Netflix has raised prices in places subscribers can absorb the price hike, this downward pricing turn is a reflection of the economic realities in poorer areas, a person with knowledge of the decision told IndieWire.Įxpect more “Basic with Ads” regions to roll out, and one day, Netflix may add a FAST (free, ad-supported streaming television) service - an option completely reliant upon advertising, and not monthly subscriptions, for revenue. Without access (yet) to an ad-supported Netflix model, subscribers in the less-affluent regions could use a break. Those countries are not the ones getting this discount - generally, they don’t need it. Those potential users are much more likely to use ad-supported streaming services, but Netflix’s “Basic with Ads” plan is currently only available in 12 countries: Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States. and Canada, with the greatest growth potential remaining in many of the world’s poorer regions. “We can confirm that we are updating the pricing of our plans in certain countries.”īut why is Netflix suddenly being so generous? The service has basically maxed out its reach here in the U.S. “We’re always exploring ways to improve our members’ experience,” a Netflix spokesperson told IndieWire on Thursday. People Are Watching Netflix to Learn a Foreign Language
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