1) marketing by the numbers and calculate the monthly contribution Netflix realizes from a subscriber at the price of $9.99 per month and $15.98 per month, respectively. Assume average varibale costs per customer are $3.50 per month, which did not change with the price increase. How much disgruntled customers can Netflix lose before profitability is affected negatively?

2) Is this a smart move by Netflix? Discuss the pros and cons of such a drastic price increase.