How do you think these firms should recognize the amounts

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Questions -

1) Video Streaming Services (e.g., Netflix and Hulu) provide internet subscription services streaming TV and movies. For a fee, subscribers can instantly watch unlimited TV shows and movies streamed over the internet on their TVs, computers and mobile devices. How do you think these firms should recognize subscription revenues?

2) Video Streaming Services obtain content distribution rights in order to stream TV shows and movies on subscribers' TVs, computers and mobile devices. Streaming content is generally licensed for a fixed fee for the term of the license agreement. How do you think these firms should recognize the amounts they pay upfront for these licenses?

3) When Video Streaming Services enter into multi-year licenses, they often pay these fees over the term of the license agreements, rather than all upfront. Does your answer to question 2 change under this scenario?

Reference no: EM132715787

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