Why I’m Happy Netflix Raised Its Prices

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This article originally appeared in Harvard Business Review on August 2, 2011

Recently Netflix announced a 60% price increase in their core DVD mail/streaming service. Many customers were upset, and some took to Facebook and Twitter to declare their outrage and plans to cancel the service.

I had a very different reaction. I was glad Netflix raised its prices.

That’s an unusual reaction for me, because usually I don’t like spending money. I drive a 15-year-old car. My house still contains big cathode ray tube TVs. I hate buying snacks at cinema concession stands.

But as a consumer, I have no problem being generous to companies that have a track record of being exponentially more generous to me.

 

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