Netflix Inc: The Customer Strikes Back Case

Keay asked his analyst to compile the financial data required to calculate CLV at Neflix, but a considerable amount of work lay ahead. Was CLV an appropriate approximation of firm value in this setting? Did CLV track with market capitalization, discounted cash flows, or other traditional firm-valuation techniques? How sensitive was CLV to various operational and strategic changes? And what role might be played by changes in technology? With such a public call on a volatile stock at this point in his young career, Keay could not afford to miss.