Posted by & filed under Financial Reporting and Analysis.

Description: Perhaps it will appeal to some customers in these inflationary times; Netflix is offering Canadians a reduced monthly rate of $5.99. The catch is you have to be willing to put up with about five minutes of ads each hour in exchange for your rate reduction. The move seems to fly in the face of Netflix’s previous claims that it would not resort to commercials, an approach it used to build its brand. The pressure from Wall Street to stem the loss of subscribers could explain the shift in policy.

Date: October 13, 2022

Source:  thestar.com

 Link: https://www.thestar.com/business/2022/10/13/netflix-canada-launches-ad-supported-tier-for-599-on-nov-1.html?source=newsletter&utm_content=a05&utm_source=ts_nl&utm_medium=email

Discussion points:

1) How many students in your class are Netflix subscribers?

2) Will this change impact whether or not you subscribe to Netflix? Do you think this is a good marketing decision?

3) The Accounting Matters inset box on page 11-19 of Wiley’s Financial Accounting: Tools for Business Decision-Making details movements and stock splits in Netflix’s shares since the company made its first public offering in 2002 up until July 2015. As a class research project, track Netflix’s stock splits since 2015 and its current stock price.

Leave a Reply

Your email address will not be published.