netflix

SmugMug Pulls a Netflix, Raises Fees for Some Customers by 67%

Back in July of 2011, Netflix announced that it would be separating its movie streaming and DVD rental services into two separate subscriptions, increasing the cost for customers who wanted both by about 60%. The news was met with a massive customer backlash online, and over the next three months, more than 800,000 customers canceled their subscriptions and the stock price took a huge hit. The story became a lesson for corporate executives on how not to do price increases. Apparently SmugMug didn't get the memo.