Question

1. What is the principal revenue source for Netflix?

2. Netflix is selling an entertainment experience. Who are the major direct and indirect competitors of the company?

3. The article indicates that Netflix is attempting to increase revenue by raising prices while holding onto its existing customer base. Generally, when prices are increased there is a fall-off in the number of customers.   Do you think Netflix’s approach will work? Please be as comprehensive as possible in your response.

4. Compare Netflix’s sales, net income and earnings per share (EPS) for the past three years. Are there any trends that you can discern?

5. Are you a Netflix user? Why or why not?

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Netflix is one of the big leaders in streaming content provider that allows the user to watch movie, shows and more also provides the more range of internet connected devices. The company basically working on the subscription base model, the users pay according to plan and company provides access to users for variety of entertainment network.
The company main source of revenue generation is subscription model, the subscription fee paid by the users for accessing the various entertainments like movies, shows etc. Basically company offers three different plans to the users for generating the revenue.
1. Basic plans offer to the user’s standard definition.
2. Standard plans offer to the user’s high definition.
3. Premium plans offer to the user’s ultra high definition.
With the help of 3 main services company able to generates revenue as follows-...

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