Earlier in the month, Netflix increased their rates by up to 60% and split up their DVD and streaming services into two entities which cause 800,000 subscribers, including myself, to drop the service altogether. Netflix believed that the increase in demand for their product warranted an increase in price. However, the price increase was too high. Starting on Halloween, Redbox will increase their price due to their recent successes. Unlike Netflix, Redbox tested their new price in many different locations and only saw an expected drop-off in demand I believe that Redbox increased their price perfectly according to the law of price and demand while Netflix needs to hire some new economists.