The problem is that Netflix’s valuation was based on the idea that they could raise prices without losing subscribers. That in turn was based on the experience

The problem is that Netflix’s valuation was based on the idea that they could raise prices without losing subscribers. That in turn was based on the experience with Amazon, which has raised the prices of Prime, products on its site, and the fees it charges its sellers all while still growing. Netflix’s valuation was based on the thinking that Netflix was now a necessity for people. But this shows it isn’t. In fact, the loss of subscribers is an even bigger deal because it suggests Netflix is eminently replaceable.