I work in a position responsible for decisions like this. They do AB tests to determine if the price change results in an excessive loss of subscribers. Usually the calculation is: if(profit increase > loss from churn); proceed. They only exact price increases if their tests indicate they won’t lose too many subscribers compared to the increase in revenue. That’s why these price increases happen little by little.
I work in a position responsible for decisions like this. They do AB tests to determine if the price change results in an excessive loss of subscribers. Usually the calculation is: if(profit increase > loss from churn); proceed. They only exact price increases if their tests indicate they won’t lose too many subscribers compared to the increase in revenue. That’s why these price increases happen little by little.