Question using the case study: Explain the different ways of financing Netflix's expansion into gaming, their advantages
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Question using the case study: Explain the different ways of financing Netflix's expansion into gaming, their advantages and drawbacks, and the impact of Netflix's expansion into gaming on Netflix's share price (300 words).
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Netflix case study NETFLIX Netflix is a subscription-based video streaming service founded in 1997, which revolutionised the way customers access TV shows and movies that they would have previously rented. Netflix's rise came at the same time as the demise of brick-and-mortar video rental companies such as Blockbuster. Netflix amassed approx. 210 million subscribers in 150 countries by 2021 and holds the largest market share of any streaming service (28% in Australia). In the first quarter of 2021, Netflix for the first time in its history lost more subscribers than it gained. The loss of less than 1million customers was small relative to their global subscriber base, but investors were unforgiving and cut share prices by a third on the announcement date alone. With competitors like Disney+ and Amazon Prime stealing market share, Netflix is seeing a sharp slowdown of their growth after their Covid-19 stay-at-home boost in 2020. To counter this slowdown, Netflix announced on July 20, that it will start offering mobile video games to its subscribers. Explain the different ways of financing Netflix's expansion into gaming, their advantages and drawbacks, and the impact of Netflix's expansion into gaming on Netflix's share price. Refer to the following link to read the article about Netflix loses almost a million subscribers: https://www.bbc.com/news/business-62226912 Netflix case study NETFLIX Netflix is a subscription-based video streaming service founded in 1997, which revolutionised the way customers access TV shows and movies that they would have previously rented. Netflix's rise came at the same time as the demise of brick-and-mortar video rental companies such as Blockbuster. Netflix amassed approx. 210 million subscribers in 150 countries by 2021 and holds the largest market share of any streaming service (28% in Australia). In the first quarter of 2021, Netflix for the first time in its history lost more subscribers than it gained. The loss of less than 1million customers was small relative to their global subscriber base, but investors were unforgiving and cut share prices by a third on the announcement date alone. With competitors like Disney+ and Amazon Prime stealing market share, Netflix is seeing a sharp slowdown of their growth after their Covid-19 stay-at-home boost in 2020. To counter this slowdown, Netflix announced on July 20, that it will start offering mobile video games to its subscribers. Explain the different ways of financing Netflix's expansion into gaming, their advantages and drawbacks, and the impact of Netflix's expansion into gaming on Netflix's share price. Refer to the following link to read the article about Netflix loses almost a million subscribers: https://www.bbc.com/news/business-62226912
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Answer rating: 100% (QA)
Financing Netflixs Gaming Expansion Strategies Advantages and Share Price Impact Netflixs foray into mobile gaming presents an intriguing strategic mo... View the full answer
Related Book For
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
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