2019-01-25 13:34:00 Fri ET
trust perseverance resilience empathy compassion passion purpose vision mission life metaphors seamless integration critical success factors personal finance entrepreneur inspiration grit
Netflix raises its prices by 13% to 18% for U.S. subscribers. The immediate stock market price soars 6.5% as a result of this upward price adjustment. The baseline subscription now costs $9 (up from $8) per month. The most popular HD standard plan costs $13 (up from $11); and the 4K premium plan costs $16 (up from $14). These price increases take effect for new subscribers and will apply to the current Netflix subscribers in the next quarter. There are good economic reasons for these retail price increases. First, the U.S. aggregate demand for Netflix video streams is inelastic in the sense that price increases can compensate for any potential loss of current subscribers. Due to the low price elasticity of demand for Netflix original content, the same video streams are likely to boost sales and profits with minimal negative impact on the current scale of the Netflix subscriber network.
Second, Netflix requires greater cash inflows to strengthen its financial resilience. Meanwhile, Netflix borrows funds to close the cash-flow gap between regular cash outlays and revenue intakes. The recent price increases can therefore help reverse this financial situation. Historical experiences further support the business case for higher prices in light of the Netflix cash burnout dilemma. Overall, the recent Netflix price increases make much economic sense.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2021-07-07 05:22:00 Wednesday ET

What are the best online stock market investment tools? Stock trading has seen an explosion since the start of the pandemic. As people lost their jobs an
2024-04-30 08:28:00 Tuesday ET

Andy Yeh Alpha (AYA) fintech network platform: major milestones, key product features, and online social media services Introduction
2023-04-28 16:38:00 Friday ET

Peter Schuck analyzes U.S. government failures and structural problems in light of both institutions and incentives. Peter Schuck (2015) Why
2018-12-05 09:38:00 Wednesday ET

Federal Reserve publishes its inaugural flagship financial stability report. Fed Chair Jerome Powell applauds both low inflation (2%) and low unemployment (
2017-08-01 09:40:00 Tuesday ET

In American states, all of the Top 4 richest people are self-made billionaires: Bill Gates in Washington, Warren Buffett in Nebraska, Michael Bloomberg in N
2020-05-14 12:35:00 Thursday ET

Disruptive innovators can better compete against luck by figuring out why customers hire products and services to accomplish jobs. Clayton Christensen, T