Netflix Scores Its Best Third Quarter on Record

Netflix Scores Its Best Third Quarter on Record

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses a company's performance, focusing on subscriber growth, particularly international, as a key metric. It highlights the impact of price hikes on churn and the company's strategy to manage consumer expectations. The financial analysis reveals significant cash flow challenges, with the company relying on the bond market for funding. Despite these challenges, the company aims to drive revenue and profits through subscriber growth, with a long-term goal of achieving positive cash flow.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is considered the most crucial metric for Netflix's growth according to the first section?

Revenue growth

EPS growth

Domestic subscriber growth

International subscriber growth

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has Netflix managed to implement price hikes without significant subscriber churn?

By offering discounts

By conditioning consumers to expect small, regular increases

By increasing advertising

By reducing service quality

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern regarding Netflix's financials as discussed in the third section?

High advertising costs

Negative free cash flow

Decreasing stock prices

Low subscriber numbers

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is Netflix funding its $7 billion annual programming expense?

Through increased subscription fees

By reducing operational costs

By accessing the bond market

Through government grants

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When is Netflix expected to become free cash flow positive according to the analysis?

2027

2025

2023

2021