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.
2018-12-21 11:39:00 Friday ET
The Internet and telecom conglomerate SoftBank Group raises $23 billion in the biggest IPO in Japan. Going public is part of the major corporate move away f
2017-07-01 08:40:00 Saturday ET
The Economist interviews President Donald Trump and spots the keyword *reciprocity* in many aspects of Trumponomics from trade and taxation to infrastructur
2017-02-07 07:47:00 Tuesday ET
With prescient clairvoyance, Bill Gates predicted the recent sustainable rise of Netflix and Facebook during a Playboy interview back in 1994. He said th
2022-03-05 09:27:00 Saturday ET
Addendum on empirical tests of multi-factor models for asset return prediction Fama and French (2015) propose an empirical five-factor asset pricing mode
2017-12-11 08:42:00 Monday ET
Fed Chair Janet Yellen says the current high stock market valuation does not mean overvaluation. A stock market quick fire sale would pose minimal risk to t
2019-10-23 15:39:00 Wednesday ET
American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization. The Business Roundtable offers this statement