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Rising prices are common. People understand and deal with it even if they don't necessarily like it. Inflation is a fact of life.

Netflix's problem was twofold. First, they increased prices enormously. A lot of people's rates almost doubled overnight. Second, they presented it as an improvement.

The combination is a real killer. Cost increases are rarely sudden, so people know that a sudden massive price increase is not being done to compensate for increased backend costs, but is instead being done to extract more profit from you. And people really hate being lied to, especially in such an obvious way, where it looks like they think their customers are idiots.

Amazon isn't doing either of these things. This is a pretty small price increase, and they're not presenting it as anything other than an unfortunate effect of rising costs.



I would agree except inflation has not increased 20% since 2005. Many Prime 2-day shipping items cost more than the same items without it. The Prime video library is sub-par to Netflix as well.


The CPI inflation calculator actually puts total inflation since 2005 at almost exactly 20%:

http://data.bls.gov/cgi-bin/cpicalc.pl?cost1=100&year1=2005&...

I can't argue with the other parts though.


Wow that is surprising actually given the great recession. Good info.


I agree. I figured you were right, but verified just to be sure, and how about that.




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