Netflix's business suffered when it failed to use an open system in its decision to introduce a large price increase while simultaneously splitting its DVD mail service from its streaming one.

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Netflix used a closed system when, in July 2011, with no consumer feedback, it announced price increases of as much as 60%, a move intended to force subscribers to drop the DVDs by mail in favor of an $8-per-month streaming plan.

Netflix's Business Suffered When It Failed to Use an Open