Remember when Netflix tried to raise its prices back in 2011 and nearly killed the business? Customers went ballistic. The stock price tanked. Analysts said the company had tarnished its image irreparably. Saturday Night Live was making fun of Netflix.
Three years after that fiasco, Netflix is raising its price again. But it’s going to be different this time. Really.
In part, it will be different because Netflix learned its lesson the hard way.
The company announced Monday that it plans to raise prices sometime in the next several months by $1 or $2 per month, depending on the market. There will be no change for “a generous time period” for current subscribers, possibly as long as a year or two.