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.
2023-06-21 12:32:00 Wednesday ET

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism. Michael Sandel (2013) What money
2024-02-05 11:26:00 Monday ET

China poses new economic, technological, and military threats to the U.S. and many western allies. In the U.S. government assessment, China poses new eco
2019-01-01 03:34:48 Tuesday ET

American allies assist AT&T and Verizon in implementing 5G telecommunication technology in the U.S. as such allies ban the use of HuaWei 5G telecom equi
2018-11-03 11:36:00 Saturday ET

Apple adds fresh features to its new iPad Pro and MacBook Air in addition to its prior suite of iPhone XS, iPhone XS Max, and iPhone XR back in September 20
2019-03-31 11:40:00 Sunday ET

AYA Analytica free finbuzz podcast channel on YouTube March 2019 In this podcast, we discuss several topical issues as of March 2019: (1) Sargent-Wallac
2018-01-03 08:38:00 Wednesday ET

President Trump targets Amazon in his call for U.S. Postal Service to charge high delivery prices on the ecommerce giant. Trump picks another fight with an