The last time Netflix raised prices, it set off a series of warning bells on Wall Street that were met with one management hiccup after the next. The stock quickly went from being one of the Street's favorites to being a case study in how to kill the golden goose. Now, as competition from Amazon  grows and the alliance between Coinstar's Redbox and Verizon gains steam, it is more important than ever that Netflix finds ways to capitalize on its customer base.

In the video below, Fool.com contributor Doug Ehrman discusses the company's crackdown on unpaid usage and its plan to raise prices in a way that addresses changing conditions.


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The article Netflix Raises Prices the Right Way originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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