Netflix shares fell after the streaming company said it would lower subscription prices in dozens of emerging markets as it struggles to gain market share globally. According to the Wall Street Journal, which broke the story, the most recent price cuts affect more than 30 countries, including Iran, Kenya, Croatia, Malaysia, and Indonesia.
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.
Netflix also intends to crack down on password sharing, and has begun doing so in Canada, New Zealand, Portugal, and Spain following trials in Latin America.
Netflix shares fell as much as 6.1% on Thursday before recovering some ground to close 3.3% lower in New York. The stock remained one of the Nasdaq 100 index’s worst performers.