Netflix Price increase

Netflix Price Increase
Name
Institutional Affiliation
Netflix Price Increase
Article Summary
The article is about the increase in Netflix’s popular subscriptions price increase. Netflix has been increasing prices for its subscription monthly, but this has not had any significant effect on its demand. Customers have continued to pay the fee since it is relatively low as compared to the value they get. The article posits that the demand for Netflix product is so high that customers can still swallow more price hikes (Snider, 2017). Due to the growing internet penetration (more homes have been able to install broadband internet), the demand for Netflix has grown even further. Its increase in price will give other competitor companies a room to also consider increasing their prices.
Economic Idea
The story presents the economics of demand and supply. According to the law of demand, when the demand for a product increases, the price usually increases as well. The demand for Netflix products has been so high and is expected to increase even further in the future. It is for this reason that the price has also increased. There is a possibility that the prices will further increase as the demand for the product continues to rise.
Opinion
I agree with what is going on in the story. It is because the increase in prices is purely in line with the laws of demand. Normally, an increase in demand will always cause the price to increase (Marshall, 2009). Netflix has been resp…