Given the subscription model, I imagine Netflix faces a slightly different pricing problem than other firms. Basically, their best customers are the ones who like them the least and who make them the most profit. Their worst customers are the ones who love them and use them as much as possible. If they raise prices a bit, as they did, the people who were subscribers "just in case" but who rarely used them are most likely to cancel. They'll have more revenue per customer, but also higher average costs.
