Netflix Just Cut Prices for 10 Million Subscribers. Here's What It Means for Investors.
Netflix (NASDAQ: NFLX) just got a little bit less expensive for millions of subscribers.
The streaming leader cut prices in several markets, focusing on emerging markets across Latin America, Eastern Europe, the Middle East, Africa, and the Asia-Pacific region. The move comes at a time when competitors like Walt Disney are raising their streaming prices in some markets. A Netflix spokesperson acknowledged competition as a factor in a statement to The Wall Street Journal. "We know members have never had more choices when it comes to entertainment," she said.
But investors shouldn't fear a massive drop in revenue for Netflix with the changes. Nor is it a desperate attempt to juice subscribers numbers. Management's much more focused on revenue growth, and the pricing changes give it the best opportunity to grow revenue in those markets.
Source Fool.com
