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Netflix Raises Prices the Right Way

The last time Netflix (NASDAQ: NFLX  ) raised prices, it set off a series of warning bells on Wall Street that were met with one management hiccup after the next. The stock quickly went from being one of the Street's favorites to being a case study in how to kill the golden goose. Now, as competition from Amazon (NASDAQ: AMZN  ) ¬†grows and the alliance between Coinstar's (NASDAQ: OUTR  ) Redbox and Verizon (NYSE: VZ  ) gains steam, it is more important than ever that Netflix finds ways to capitalize on its customer base.

In the video below, contributor Doug Ehrman discusses the company's crackdown on unpaid usage and its plan to raise prices in a way that addresses changing conditions.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (8) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 29, 2013, at 12:41 PM, kkrimmer wrote:

    The Death of the PC ...

    Fools buy into the fool.

  • Report this Comment On April 29, 2013, at 1:50 PM, Burstedbladder wrote:

    Interesti8ng article, but they left out the most important part. WTF are the prices going to be?


  • Report this Comment On April 29, 2013, at 2:38 PM, nolefann wrote:

    I would gladly pay triple if streaming selection was the same as the DVD selection.

  • Report this Comment On April 29, 2013, at 3:43 PM, huston58 wrote:

    dear fools most of the people who find you interesting are readers not video watchers i was very disapointed when i clicked on this link only to find a video insted of a story.

  • Report this Comment On April 29, 2013, at 5:28 PM, nireyaj wrote:

    Investors aren't who Netflix has to be concerned about. If Netflix upsets too many current customers/potential customers it will become extinct, and investors will not be able to save it.

  • Report this Comment On April 29, 2013, at 10:04 PM, Speedracer69 wrote:

    Netflix raises the cost the right way? Well looks like I will be cutting Netflix off my monthly billing and sticking to Crackle. There are only two of us in my house hold that use netflix and I will not shell out more considering the crap movies from india, gay and lesbian films and just a list of old movies that we don't watch. Thanks for the heads up because I hope you stock holders feel the burn when people drop netflix.....

  • Report this Comment On April 29, 2013, at 10:06 PM, Speedracer69 wrote:

    Oh and my PC is going nowhere :)

  • Report this Comment On April 30, 2013, at 2:35 AM, JakeFromDenmark wrote:

    @Burstedbladder Well depending on how you spin it it´s not really a price increase.

    At the moment the $7.99 streaming subscription allows 2 simultaneous streams.

    Now they will be offering a 4 stream plan at $11.99 which saves you almost $4 ;-)

    @Speedracer69 So since you are only two simultaneous users of the service you won´t be affected by this.

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