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Suppose that the price increase had no impact on acquisition. However, suppose management is worried that retention could fall once the monthly price exceeds the
Suppose that the price increase had no impact on acquisition. However, suppose management is worried that retention could fall once the monthly price exceeds the $10 threshold. What is the break-even retention rate for the proposed $2 billion increase in content spending combined with a price increase to $10.99 per month? What do you tell your CFO regarding your proposed investment? Hint: use Excel's Solver functionality
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