Why Netflix Is A Cautionary Tale For Newspapers

When Netflix first announced earlier this year that it was changing its pricing plans for its legacy DVD-by-mail service as a way of promoting its digital streaming business, we wrote about how this was very similar to what newspapers have been trying to do — that is, moving people from the high-cost legacy side of the business (i.e., print) to the lower-cost digital side (i.e, streaming). So what kinds of lessons can we draw from the furor over Netflix’s pricing change and the impact it has been havingon the company’s revenues? Here’s a hint: they’re not good.

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