. Promotional campaigns for new original titles to generate more density of viewing and conversation around each title. Such campaigns involved sending emails to subscribers at least weekly and often more frequently calling attention to titles highly matched to a title viewed the previous day, previous several days, or previous week. E-mails were also sent regularly to announce the availability of new releases that matched well with the subscriber's viewing history. When users were browsing various titles in various genres of interest, there was always a row of titles with the heading "Because you watched [title] just under rows of titles on the subscriber's watch list. On several occasions. Netflix CEO Reed Hastings called attention to the growing importance of marketing efforts calling a subscriber's attention to titles closely matched to recently viewed titles or to help make certain new titles a bigger hit in a particular nation or among a particular demographic segment. These were deemed valuable contributors to heightening subscriber satisfaction with the entertainment value Netflix was providing and also aiding subscriber retention and the acquisition of new subscribers. Further, because Netflix operated in so many countries, Hastings was a big fan of experimenting with different marketing approaches in different markets and thereby learning more about what worked well in marketing Netflix's original content and differentiating Netflix from rival streaming providers.25 Those approaches that were successful became candidates for use in other locations. Business Segment Reporting-New Metrics for 2020 Until the fourth quarter of 2019 Netflix had reported its performance for three business segments: domestic streaming, international streaming, and domestic DVD. Management used this business segment classification for purposes of making operating decisions, assessing financial performance, and allocating resources. The company's performance in each of these three business segments for 2015 through 2019 is shown in & Exhibit 5. EXHIBIT 5 Netflix's Performance by Business Segment, 2015-2019 (in millions, except for average monthly revenues per paying member and percentages) Domestic Streaming Segment 2015 2016 2017 2018 2019 Paid memberships at year-end 43.4 47.9 52.8 58.5 610 Paid net membership additions 5.6 4.T 4.9 5.7 2.6 Average monthly revenue per paying membership $8.50 $9.21 $10.18 $11.40 $12.57* Revenues $4.180.3 $5.077.3 $6.153.0 $7.646.6 $9.243.0 Cost of Revenues (Note 1) 2.487.2 2 855 8 3.319.2 4,038.4 4,867.3 Marketing costs 313.6 412.9 603.7 1,025.4 1.063.0 Contribution profit (Note ?) $1.375 5 $1.712.4 $2,078.5 $2.582.9 $3,312.6 Contribution margin International Streaming Segment Paid memberships at year end 27.4 41.2 57.8 80.8 106.1 Paid net membership additions 11.7 14.3 18.5 22.9 25.3 Average monthly revenue per paying membership $7.48 $7.81 $8.66 Nate 3 Revenues $ 1.953.4 3,211.1 $ 5,089.2 7,782.1 $ 10.616.2 Cost of Revenues (Note 1) 1.780.4 3.042.7 4.359.6 5.776.0 7.449.7 Marketing costs 506.4 684.6 1 344.1 1.589.4\fEXHIBIT 6 Netflix's Performance by Geographic Region, 2019 (in millions, except for average monthly revenues per paid subscriber) Three months ended March 31, 2019 June 30, 2019 Sept. 30, 2019 Dec. 31, 2019 Full Year 2019 UCAN Streaming Revenue $ 2,257 $ 2,501 $ 2,621 $ 2.672 $10,051.2 Paid Memberships 66.63 66 5 67-11 67.60 63.66 Paid Net Additions 1 88 0.13 0.61 0.55 2.41 Average Monthly Revenue per Paid Subscriber $ 11.45 $ 1252 1308 13.21 12.57 EMEA Streaming Revenue 1.233 1.319 1.428 1.363 $ 5.543.1 Paid Memberships 42.54 44.23 47.36 51.78 51.78 Paid Net Additions 1.69 3.13 4.42 13.96 Average Monthly Revenue per Paid Subscriber 10.23 10.13 10.40 10.51 10.33 LATAM Streaming Revenue 630 677 741 TAF 2.795.4 Paid Memberships 27.55 27.89 19.38 31-42 31.47 Paid Net Additions 1.47 0.34 1.49 5.34 Average Monthly Revenue per Paid Subscriber 7.84 8 8.14 8.63 8.21 APAC Streaming Revenue 320 349 382 415 $ 1.469.5 Paid Memberships 12.14 12.94 14.49 16.23 16.2 Paid Net Additions 1.53 0.30 1.54 1,75 Average Monthly Revenue per Paid Subscriber 9 07 9.24 Total Streaming Revenue $4,440.0 $4,846.0 $5,173.0 $5.399 0 $19 859 2 Paid Memberships 148,860 151,510 158,334 167,090 167,090 Paid Net Additions 9.60 3.43 6.TT 8.76 27 83 Average Monthly Revenue per Paid Subscriber Not reported Not reported : 11 06 $ 10.82 Sourcel' Company mobile, Excel spreadsheet regional information for 2010, posted in the Inwriter Relation section in part of the company's nipart of Fourth Quinta: 2019 Ainincial insults, wwwnefis com, accorded February 15. 2020\fComcast management decided to use NBC's familiar peacock logo as the logo for the company's new subscription-based streaming service to remind customers that NBC was a network with great programming and to drive interest back to NBC's popular event-type TV programs (The Masked Singer, The Last Voice, America's Got Taleur) and NBC's live sports programming. which included the 2020 Summer Olympics. Top management at Comcast and NBCUniversal believed that while streamed video might indeed be the future of watching TV and movies, the cable business would remain profitable for years to come (despite the likely permanent declines in the number of cable and satellite subscriber worldwide) and, further, that free ad-supported viewing was likely to remain far more prevalent and popular with consumers than subscription-supported viewing. Comcast management believed that bundling Peacock Free for customers with Comcast cable subscriptions would help reduce the number of customers dropping the company's cable service and switching to a rival streaming provider, Hence, they saw no good business reason to create a streaming platform with strategy elements that would help undermine the profitability and longevity of company's cable business During a Peacock Investor Day presentation on January 16, 2020, a NBCUniversal officer cited a survey where consumers were asked "Which new streaming Pipe CHE service are you likely to try-one that is free with some ads or one that is paid with no ads?" Eighty percent responded "free with some ads," and 20 percent responded "paid with no ads." These results were a factor in convincing the Comcast-NBCUniversal management team to position Peacock as an ad-supported streamer of premium content in what they viewed as a mostly vacant market niche (among rival video streaming providers, only Hulu offered consumers a low-priced, ad supported streaming option). Moreover, the Peacock strategy was to help secure a competitive edge by having an industry- crage of five minutes of ads per hour, which contrasted sharply with TV broadcasting where there were 16-20 minutes of ads per hour and premium video streaming where there was an average of eight minutes of ads per hour." And Peacock Free's ad-supported streaming of premium rentiate it from the three competitively strong subscription-based providers-Netflix, Amazon Prime Video, and HBO Max. Peac ient believed it would have little difficulty selling ads for Peacock's content, given that NBC, ABC. CBS. FOX, and some 250 other channels had advertising-based business models representing 92 percent of total viewership." NBCUniversal said it would invest $2 billion in Peacock over 2020 and 2021, with goals of reaching between 30 and 35 million active users in the United States by 2024. generating $2.5 billion in new revenues with average revenue per subscriber of $6-$7, and achieving break even on Peacock's streaming service on an earnings before interest, taxes, depreciation, and amortization (EBITDA) basis. ViacomCBS and CBS All Access Viacom and CBS completed their long expected and often contentious merger in December 2019, creating a multinational media conglomerate with assets approaching $50 billion and 2019 revenues of $27.8 billion. The new company's main assets included Paramount Pictures film studio and a library of 3,600 movies; the CBS broadcasting network and its library of 140.00 TV episodes, a streaming platform called CBS All Access that provided approximately 4.5 million subscribers in the United States, Canada, and Australia with a ent and back season CBS TV shows, CBS Sports (NFL, college football, and college basketball games), other recently-aired programs on CBS broadcast properties; a number of CBS-affiliated television stations, CBS Television Studios and CBS Studios International; cable television networks MTV. Nickelodeon (watched in 600 million households around the world). BET. Comedy Central, CMT (Country Music Television), Showtime, The Movie Channel, VH1, Flix, and TEN (a high profile channel in Australia); free ad-supported video-on-demand platform Pluto TV with 100+ live TV channels and housands of TV shows and movies; 50 percent co-ownership with AT&T's WarnerMedia subsidiary of The CW Television Network (commonly referred to as just The CW): Nickelodeon Animation Studio: an ass ortment of international and regional networks and operations that provided the company with the capability to engage in video streaming in many countries, and book publisher Simon & Schuster. CBS's media properties alone made it a global media titan, with some 4.3 billion watchers of its broadcast and pay TV programs in 180 countries at year-end 2019. In early 2019, before the merger, Viacom had purchased Pluto TV for $360 million and proceeded to expand its offering of 100 ad-supported channels by adding 43 channels in the fourth quarter of 2019, including 22 Spanish and Portuguese ones that were popular in Latin America and Brazil; Pluto's subscriber base grew over 70 percent in 2019 to a total of over 20 million going into 2020. On December 20. 2019. ViacomCBS announced it was buying a 49 percent ownership stake in Miramax Pictures for an upfront payment of $150 million and an agreement to invest $225 million in Miramax for movie and television productions over the next five years. The leal also specified that ViacomCBS's Paramount Pictures would become the exclusive distributor for the Miramax library of 700+ films and have a first-look at Miramax's new content creation. In February 2020, ViacomCBS executives were in the final stages of readying plans to launch a new video streaming service built around the CBS All Access streaming service, that would be expanded to include a broad pay "House of Brands" product offering comprised of a wide assortment of titles from Viacom's multiple libraries and selected popular shows on BET, Nickelodeon, MTV. Comedy Central, Showtime, and perhaps others. Further, the new streaming service would draw heavily upon the capabilities of Paramount's and Miramax's movie and television production studios, Nickelodeon's Animation Studio, and perhaps other ViacomCBS operations to develop and produce new original content. Going into 2020. ViacomCBS had global production studios that were currently turning out over 750 shows with 43,090 episodes."