Evaluating the potential impacts each combination of products will have on the company’s revenue stream.

Please make you to reference your sources and to form your own views and not to simply “copy and paste” from reports.

QUESTION 1. DISCUSSION ON FORECASTING TECHNICS [4 marks]

Before you build your own Revenue forecasts, please watch these two videos created by a tutor who used Netflix to teach forecasting using:

• Holt’s Method
• Regression model

In the written report, use bullet points to:

• highlight the main limitations in using these technics
• propose amendments to the methods to make them more appropriate to forecast Netflix’s revenue
• This question does not have a spreadsheet

QUESTION 2. FORECAST REVENUE | PURE SVOD PLAYER [6 marks]

• Assuming Netflix decides to add maintain their current business model as is, please use the “Question 2” section in the Revenue worksheet to do a quarterly revenue forecast for Netflix from September 2022 to June 2025.
• Include any inputs and assumptions in the Inputs worksheet
• This question does not have a written report

QUESTION 3. FORECAST REVENUE | SVOD and AVOD [8 marks]

• Assuming Netflix decides to add a second subscription tier with the Advertising video-on- demand (AVOD) model, please use the “Question 3” section in the Revenue worksheet to do a quarterly revenue forecast for Netflix from September 2022 to June 2025.
• Include any inputs and assumptions in the Inputs
• Make sure you at least account for:
  • cannibalisation across products,
  • new potential customers and
  • different attrition rates by product
  • advertising revenue
• This question does not have a written report

QUESTION 4. FORECAST REVENUE | SVOD, AVOD AND SUB-ACCOUNTS [8 marks]

• Assuming Netflix decides to:
  • add a second subscription tier with the Advertising video-on-demand (AVOD) model,
  • add sub-accounts for “sharing-password” customers

please use the “Question 4” section in the Revenue worksheet to do a quarterly revenue forecast for Netflix from September 2022 to June 2025.

• Include any inputs and assumptions in the Inputs
• Make sure you at least account for:
  • cannibalisation across products,
  • new potential customers and
  • different attrition rates by product
  • advertising revenue
• This question does not have a written report

QUESTION 5. OUTPUTS [6 marks]

• In the Outputs worksheet, please use tables and charts to report the key results of your
• Please include any sensitivity analysis you judge relevant
• This question does not have a written report

QUESTION 6. DISCUSS YOUR FINDINGS [6 marks]

In the written report, use bullet points to:

• Discuss your main findings
• Propose a way forward to the Netflix management

QUESTION 7. FINANCIAL MODELLING BEST PRACTICES [2 marks]

The use of financial modelling best practices in the revenue model, inputs and outputs will be marked in this question.