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This is not an accurate estimation because not all of the old customers were on the same $10/month plan, and not all of the 24 million (forecasted) customers ar
by brown9-2 15y ago
This is not an accurate estimation because not all of the old customers were on the same $10/month plan, and not all of the 24 million (forecasted) customers are on the $16/month plan.
Netflix's own document lays out the forecast pretty well: http://files.shareholder.com/downloads/NFLX/1403529688x0x500395/7c72e777-75c5-4f7f-9640-5b06f8cc54e4/Guidance_Update_Sept_2011_final.pdf http://files.shareholder.com/downloads/NFLX/1403529688x0x500... (see Venn diagram). Too bad the CNN article doesn't delve into these details.
- nandemo 15y agoIt's not accurate, but think about it: 25M to 24M is only a 4% decrease; $10 to $16 for the dvd+streaming plan is a 60% increase, and even if that translates to only (say) a 6% increase in average revenue per customer, they're safe.