Some of the customers acquired on Instagram are influencers who, in addition being a die-hard Hulu fan (assume monthly retention rate of 95%, interest rate of 10% with yearly margin of $60) also spread positive word of mouth and influence others to sign up for Hulu. If the social contagion parameter for such influencers in 0.35 (that is, 100 such influencers were able to persuade 35 new customers to subscribe to Hulu), what is the maximum that Hulu can pay to acquire such an influencer without making a loss on acquiring the influencer?

Answer rating: 100% (QA)

To determine the maximum Hulu can pay to acquire such an influencer without making a loss we need to ... View the full answer