Apply ABC to analyze customer profitability and allocate costs at Netflix.

Identify cost drivers in a service industry setting such as content usage, subscription tier, and streaming hours.

Implement an ABC system to allocate costs to different customer segments.

Analyze customer profitability based on ABC allocations.

Recommend strategies to enhance profitability and customer value.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Content Usage	Number of hours	$70,000,000
Subscription Tier	Number of subscriptions	$50,000,000
Streaming Hours	Number of hours	$80,000,000