Netflix acquires customers

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Question

The main way that Netflix acquires customers is through the one-free-month offers inserted in new DVD players. Thus, what determines how many people receive these offers? Use this information (given in the case) to forecast the new subscriber growth rates for the years 2001-2004. Put this rate into the appropriate spreadsheet cell (cell B3). You should then assume a constant, sustainable growth rate after 2004 - the spreadsheet is set up so that you start with a rate of 3%, but you can change this rate, also (cell B4), to see how it affects the valuation.

Reference no: EM133475011

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