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