Reed Hasting’s company, Netflix, has suddenly taken a big hit. Until now, Netflix has been flourishing. In July, the price of Netflix stock was around $300. Currently, it is trading at $79. What an outrageous drop! Along with the price change, Netflix has approximately lost 800,000 subscribers ion comparison with last quarter. Why has this happened? The old Netflix plan included Internet streaming and DVDs by mail for as low as $10 a month. In September, this same package costs $16 a month. Since there is such a high demand for Netflix a price increase is inevitable. Netflix has been growing non-stop and with this comes more expenses to pay. Paying $10 a month was not enough to keep Netflix running. The company needed more money to license additional material for online services. Reed Hastings increased the price too much in a short period of time and this startled subscribers. His price increase strategy was very poor in which he scared off customers. Even though Netflix is in a shaky position, I think eventually the company will rise back up. Netflix has little competition in online streaming and is by far the best quality.