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Netflix is a streaming service headquartered in Los Gatos, California, that offers a wide variety of television shows and movies. In 1997, Netflix was first launched as a mail based DVD rental service; in 2007, it first began offering a streaming service combined with its mail based DVD rentals. In 2010, Netflix first offered a “standalone” standard streaming service for which the company charged subscribers $7.99 per month. Currently, Netflix charges $15.49 for the equivalent (ad free) service. This represents a roughly 94 percent increase in price for the streaming service since it was first introduced. Worldwide, Netflix now has roughly 240 million subscribers; in 2010, it had only 18 million subscribers. Netflix’s pricing strategy for its standard streaming service when it was first introduced in 2010 can best be described as which of the following? Price skimming Penetration pricing Dynamic pricing Status quo pricing

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