Competition Responding to Price Changes

Competition Responding to Price Changes

In the free market economy, there are so many things that occur when a single thing is changed. This can result in massive profits or losses for companies and competitors.

Recently, the online streaming juggernaut Netflix announced that they would be increasing their prices. This comes almost a year after their first try at increasing prices, an attempt which failed due to existing subscriber’s outcry.

This price increase, however, will take effect in the next six months. While the market is still contemplating their reaction, Netflix’s competitor Hulu is making an aggressive move towards gaining market share.

Hulu announced that they would be offering a limited time decrease in price to their services. They hope that this enticement will shift viewers from Netflix over to their services.

Is the price increase on Netflix enough to cause you to take advantage of this new Hulu offering?