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Pricing Strategy and Break-Even Analysis at Netflix Requirements: Develop a pricing strategy for Netflix's streaming services based on cost-plus pricing and subscriber growth projections. Cost

Pricing Strategy and Break-Even Analysis at Netflix

Requirements:

  1. Develop a pricing strategy for Netflix's streaming services based on cost-plus pricing and subscriber growth projections.

Cost Elements

Amount ($)

Content Acquisition

3,000,000,000

Technology

1,200,000,000

Marketing

800,000,000

Fixed Costs

2,000,000,000

Expected Subscribers Growth

20,000,000

  1. Calculate the minimum monthly subscription fee required to achieve a 30% profit margin.
  2. Perform break-even analysis to determine the number of subscribers needed to cover fixed and variable costs.
  3. Recommend a pricing strategy that balances subscriber acquisition with revenue growth.

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