I personally would read this as a sign that more people are turning to ad blocking or straight up leaving. Not enough money coming in so they have to jack prices up way faster than they'd likely do otherwise.
Yeah but if they double the price and only lose 1/3 of their customers that is a profit. They are aiming for that equilibrium price and honestly more people are willing to pay to never have their entertainment end than we could ever hope for.
I never accused them of being competent. They're getting into a death spiral, but there still isn't a very good and well known alternative to leech the disgruntled customer base.
They'll have to be taught a hard lesson. But realistically family was overly generous with a lot of folks essentially paying 2$/m for premium. You can definitely double this amount without many of them bothering to pirate.