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October 18, 2016

Netflix tests limits of price increases for original shows

By MICHAEL LIEDTKE
AP Technology Writer

SAN FRANCISCO — Netflix is testing the financial limits of its streaming video service as the rising cost of producing original programming pushes up subscription prices.

The latest reminder came Monday with the company's third-quarter earnings report, which revealed that Netflix added 370,000 U.S. subscribers. That marks its second consecutive quarter of slowing U.S. growth since lifting a two-year rate freeze and increasing prices by as much as 20 percent for more than 20 million existing subscribers.


 
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