Netflix has maintained the ability to increase its prices and subscribers at the same time due to latent demand. With rising prices comes new content, more Netflix originals, exclusive contracts, etc. Latent demand occurs when consumers share a need that cannot be satisfied by any existing product or service. The importance of this is that it gives companies the opportunity to increase their revenue when they invest in marketing efforts or introduce low-cost products, such as Netflix. Netflix was the first to offer the streaming service that consumers wanted but didn't know they could have. For a while Netflix had no real competition in this market until Hulu came along with streaming TV shows right after they aired, Amazon Prime which is basically the same as Netflix originally, and now HBO. Netflix has been able to expand its service as competition has arisen to make its product more desirable, which has recently seen some price increases. You might assume that demand for the service would decrease due to rising prices, but in reality demand has increased due to investments in new marketing and product development. How long Netflix will be able to maintain latent demand is anyone's guess, but for now they're steady