Suppose that Netflix switches unlimited streaming to a Pay-Per-View pricing model while keeping their DVD model. Users will stream certain content for $2.99 per video. Using the No Change subscription numbers suppose that 1) 10% of Stream only customers leave Netflix and 2) 10% of customers using Both leave Netflix. However, all the remaining streaming customers watch on average 3 paid video streams a month for $2.99 per video. What is the operating income for Q4? Please show your work and fill in the answers in the income statement format below (5 Points).

Q4 PPV Pricing Model	Mail	Stream	Both
Number of subscribers (mil)
Price per month
Revenue per plan (mil)
Total Domestic Revenue (mil)
Cost of Revenues
All except streaming	$ 269.00
Streaming royalties	$ 268.00
Gross Profit (mil)
Sales, Gen & Admin	$ 118.90
Other Operating Expenses	$ 70.00
Operating Income (mil)