(AP) – It seemed like a bad idea at the time. But so far, Netflix is making out OK after its decision last year to raise U.S. prices for video subscription services. At first, the move caused mass customer defections and a stock sell-off. But this year, Netflix has rebounded to get back some of its subscriber growth.
The company increased prices by as much as 60 percent as part of an effort to phase out its DVD-by-mail rental service and raise more money to license TV shows and movies for its Internet video library. But because it split video streaming and DVD rentals into separate services, it upset both customers and investors.
While the customers seem to have been in a forgiving mood, investors have been a little slower to make up. Netflix expects to post an annual loss this year – their first since 2002.