In 2011, Netflix customers' service fees increased by 60%. Netflix discontinued a subscription offering DVD rentals and unlimited video streaming for $9.99 per month; DVDs and streaming would be separated, each costing subscribers $7.99 a month ($15.98 for both). This strategic decision occurred as video streamed via the Internet slowly replaced discs. However, now customers wanting both services had to juggle two accounts, and Netflix lost around 800,000 subscribers. Assume that you are the director of product pricing at a firm offering a video streaming platform that allows subscribers to view and download content over the Internet. Competitors are currently producing substantially the same product as your firm—video streaming services only. You have realized that to remain competitive, your company must both continue adding content and move into areas of new and original content. Based on an annual subscription cost that is uniform across all markets, current profit margins will not cover fixed costs associated with moving into original film production.