25iQuiz:
How many new customer acquisitions (gross) must "The Irishman" generate to produce a financial return on the ~$180 million Netflix invested to acquire the movie?
Assume that no other unit economics factors (e.g., churn) would be impacted. Instead focus just on CAC.
How many new customer acquisitions (gross) must "The Irishman" generate to produce a financial return on the ~$180 million Netflix invested to acquire the movie?
Assume that no other unit economics factors (e.g., churn) would be impacted. Instead focus just on CAC.
2/ Wait! You say you want a tool to do this Netflix analysis ? How about dskok.wpengine.netdna-cdn.com/wp-content/upl…
Is that the right tool?
Oh, you want some of the other assumptions?
Monthly churn: 4%
Monthly ARPU: $10
Gross Margin: 30%
State your assumed cost of capital.
Is that the right tool?
Oh, you want some of the other assumptions?
Monthly churn: 4%
Monthly ARPU: $10
Gross Margin: 30%
State your assumed cost of capital.
3/ If you calculate a LTV and then do many model runs by changing just one variable in each direction in each model run, what is the name of this type of analysis?
4/ How sensitive are the unit economics of Netflix to churn? Netflix doesn't report churn so you need to be a detective. How does a 10 basis point change in churn impact unit economics? What marginal benefit to churn did the Irishman also create? secondmeasure.com/datapoints/net…
5/ This is a fact:
"Netflix’s Total Revenue has grown a stellar 78% from $8.8B in 2016 to almost $15.8B in 2018"
Because it actually happened.
This is technically called a "guess":
"We expect Domestic Streaming revenues to grow at around 9% in 2020". trefis.com/stock/nflx/art…
"Netflix’s Total Revenue has grown a stellar 78% from $8.8B in 2016 to almost $15.8B in 2018"
Because it actually happened.
This is technically called a "guess":
"We expect Domestic Streaming revenues to grow at around 9% in 2020". trefis.com/stock/nflx/art…
