in—they faced a 60% price hike to retain the same service in 2011.

In early 2011, Netflix consumers paid about $10 a month for a package consisting of streaming video and DVD

rentals. In July 2011, the company announced a packaging change. Customers wishing to retain both streaming

video and DVD rental would be charged $15.98 per month, a price increase of about 60%. In 2014, Netflix also

raised its streaming video subscription price from $7.99 to $8.99 per month for new U.S. customers. The company

also changed its policy of 4K streaming content from $9.00 to $12.00 per month that year.

How would customers of the 18-year-old firm react? Would they abandon Netflix? Would the ease of access to other

venues make a difference in how consumers responded to the Netflix price change? At the time, Netflix had few

competitors; in the intervening years, the field has grown to ten major competitors and nearly 200 smaller ones. Is
{"source": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_type": ".pdf", "batch_upload": true, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "producer": "Prince 14.2 (www.princexml.com)", "creationdate": "2022-12-07T14:15:44-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_size_mb": 26.99, "file_name": "Microeconomics3e.pdf", "moddate": "2022-12-07T14:23:05-06:00", "upload_timestamp": "2026-02-07T15:24:38.309401", "title": "Principles of Microeconomics 3e", "total_pages": 597, "uploaded_via": "batch_uploader"}