IMO they shot themselves in the foot with the lower price to begin with. People would have no problem paying $10/month for their service, but once you pay $8/month, then having the price increase to $10, it could create a problem.
Another $2 dollars per month would net them an additional $80 million in profit. Not a bad idea if they feel people wouldn't have a problem with it.
But, I think the different price points for different amounts of users is a better idea. Even charging $2 more to have access to their own original content might work.
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