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4 . The case includes financial data on Netflix and its major competitors. Students are to calculate the company s historical free cash flow, project

4. The case includes financial data on Netflix and its major competitors. Students are to calculate the companys historical free cash flow, project future cash flow, and discuss how to fund growth. To date, Netflix has relied heavily on debt to fund its investment in content, but is that sustainable? To refine their estimates of future cash flow, students can use a simple break-even analysis model incorporating average price, number of subscribers, churn rates, and expected fixed and marginal costs. Netflix may have a loss. What does the Marketing Plan propose to convert that into a profit (best way to achieve this)? Justify from data in the case.

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