Question
Assume netflix had decided to postpone their price increase in may 2016 for a year. Calculate what is expected to have happened to their membership/quantity
Assume netflix had decided to postpone their price increase in may 2016 for a year. Calculate what is expected to have happened to their membership/quantity numbers from the end of q1 2016 to the end of q3 2016. these wil be their expected quantities without the price increases.
US Streaming (millions) Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Revenue 1026 1064 1106 1161 1208 1304 Contribution Profit 340 344 379 413 414 475 Contribution Margin 33.1% 32.3% 34.3% 35.6% 34.3% 36.4% Paid Memberships 41.1 42.1 43.4 45.7 46.0 46.5 Total Memberships 42.3 43.2 44.7 47.0 47.1 47.5 Net Additions 0.90 0.88 1.56 2.23 0.16 0.40 Monthly Revenue per Paid Member $ 8.33 $ 8.43 $ 8.49 $ 8.47 $ 8.75 $ 9.40 Percentage Chg. Rev 3.7% 3.9% 5.0% 4.0% 7.9% Percentage Chg. Memberships 2.5% 3.2% 5.3% 0.6% 0.9% Source: Netflix 10Q Q3, 2016
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