10/19/2016

How Netflix Navigated a Price Increase

By offsetting the increase with improved services, the company scored success

Despite raising its prices, Netflix actually saw a huge surge in subscribers during its most recent quarter. The reason? It offset the increase with additional value. 

Sometimes, price increases can scare away your members. But they don’t have to—especially if your benefits remain worth the cost.

Case in point: Netflix. At times, the streaming company has struggled to raise its prices without facing consumer backlash—most notably in 2011, when the company was criticized for its attempt to spin off its DVD-delivery service from its streaming service.

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