Case Questions 1). According to your textbook, the Marketing Research process involves six steps. Discuss these six steps in relation to how they might be used at Netflix to decide whether or not to include advertising in their programming.

2). Read the Variety article "Netflix Running Ads?"

Would the survey conducted by Hub Entertainment Research be considered Primary or Secondary research to Netflix? What are the benefits and drawbacks to Netflix of using this survey information from Hub in their decision making?

3). Imagine you are conducting primary research for Netflix to determine if adding advertisements to the programming would cause subscribers to cancel their Netflix plan. What do you think the best way to get this information would be? Please refer to the section in your book regarding "Primary Research Methods" when answering this question.

4). Many times, conducting primary research involves gathering data via surveys. What are some characteristics of well-written survey questions? NOTE: This was covered in the Business Communications class. If you have not had that class (or have forgotten it) you will need to do some Googling. This information, unfortunately, is not covered in the marketing text. But, it is important to be able to write good survey questions when doing primary research, otherwise you'll end up with bad data!

NETFLIX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2018 2017 $ 1.211.242 S 558,929 S (13,043,437) 999,880 7,532,088 41,212 83,157 320,657 (9,805,763) 900,006 6,197,817 60,657 71,911 182.209 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash used in operating activities: Additions to streaming content assets Change in streaming content liabilities Amortization of streaming content assets Amortization of DVD content assets Depreciation and amortization of property, equipment and intangibles Stock-based compensation expense Excess tax benefits from stock-based compensation Other non-cash items Foreign currency remeasurement loss (gain) on long-term debt Deferred taxes Changes in operating assets and liabilities: Other current assets Accounts payable Accrued expenses Deferred revenue Other non-current assets and liabilities Net cash used in operating activities 40,428 (73,953) (85,520) 57.207 140,790 (208,688) (200,192) 199,198 150,422 142.277 2.062 (2.680,479) (234,090) 74.559 114,337 177.974 (73,803) (1,785,948) NETFLIX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2018 2017 $ 1.211.242 S 558,929 S (13,043,437) 999,880 7,532,088 41,212 83,157 320,657 (9,805,763) 900,006 6,197,817 60,657 71,911 182.209 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash used in operating activities: Additions to streaming content assets Change in streaming content liabilities Amortization of streaming content assets Amortization of DVD content assets Depreciation and amortization of property, equipment and intangibles Stock-based compensation expense Excess tax benefits from stock-based compensation Other non-cash items Foreign currency remeasurement loss (gain) on long-term debt Deferred taxes Changes in operating assets and liabilities: Other current assets Accounts payable Accrued expenses Deferred revenue Other non-current assets and liabilities Net cash used in operating activities 40,428 (73,953) (85,520) 57.207 140,790 (208,688) (200,192) 199,198 150,422 142.277 2.062 (2.680,479) (234,090) 74.559 114,337 177.974 (73,803) (1,785,948)