1. Apple is launching a new subscription service for original content. The development costs are $500 million, and annual licensing fees are $100 million. Apple anticipates subscriber growth to reach 10 million in the first year, with each subscriber paying $15 per month.

Requirements:

• Develop a detailed table outlining the development costs and annual licensing fees.
• Calculate the total investment and annual costs for the content subscription service.
• Determine the breakeven subscriber base and revenue for the service.
• Analyze Apple's competitive advantage in the streaming content market.
• Discuss strategic pricing and marketing strategies to attract and retain subscribers.
• Evaluate the financial impact on Apple's income statement and cash flow.