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Perform a sensitivity analysis for Netflix Inc.'s subscription revenue forecast. Identify key variables, such as subscriber growth rate and average revenue per user (ARPU), and
Perform a sensitivity analysis for Netflix Inc.'s subscription revenue forecast. Identify key variables, such as subscriber growth rate and average revenue per user (ARPU), and assess the impact of changes in these variables on subscription revenue projections. Present the sensitivity analysis results in a table format and discuss the risk factors influencing Netflix's revenue outlook.
Variable | Base Case Value | High Value Scenario | Low Value Scenario |
Subscriber Growth Rate | 10% | 15% | 5% |
ARPU | $15 | $20 | $10 |
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