Streaming services in november of 2019 and combine it

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streaming services in November of 2019 and combine it with Hulu, to form a very large online streaming service. Another huge threat Netflix Inc. will face is the issue with regulations in other nations. For example, Netflix Inc. is not located in China as of yet due to all their regulatory issues and the exponential cost they must incur to bring their services there; which means those costs come back to the customers. Another issue Netflix is now having to face is illegal distribution of their product with their own personal shows like House of Cards or Orange is the new Black where it can be found illegally on files sharing websites. Lastly, while not the biggest threat it is a significant threat since it effects the bottom line with sales is the decline in their overall DVD subscriptions. With the decreased revenue in this area, Netflix must retain and enlarge their streaming customers to compensate this costs.
Running Head: Case Study 1: Netflix9Financial StatementsIncome Statement. When looking at the income statement provided from Stock Analysis on Net; it is revealing that since 2014 that each year while each year the gross profit has increased each year the net income has gone both up and down. However, as of the end of the fiscal year in December 2018, they posted their best net income in their history at having a net income of $1,211,242. One of the potential reasons that there is over a $700,000 increase in net income between 2017 and 2018 is that many individuals became cord cutters to cancel their cable subscription and because more users wanted to see the new content that only can be seen on Netflix. Balance StatementUpon reviewing the balance sheet of Netflix Inc. since 2017, they have nearly doubled their assets and stockholders equity from $14,359,096 in 2017 to $27,218, 632 as of the 1stquarter in 2019 according to Netflix Inc. Another reason that you can see that Netflix Inc. is
Running Head: Case Study 1: Netflix10making attempts to grow their business is they have tripled their long term debt, with the advent of creating new content, and continually expanding their content in their current library from other nations. Cash Flow. In the next section of the financials of Netflix Inc. is the cash flow you will see that from 2014 to 2018, there is a 10 million dollar jump from the additions to streaming content. This has much to do with the continually adding new content to the library archives; as well as creating new content for the people to watch. Another key thing to be aware of when looking at the cash flow is the net cash flow from operating activities. Currently in 2018, they have been operating ata loss of $2,680,479, the reason for this is because Netflix has been spending money to increase their DVD acquisitions and buying up personal property for both filming locations and having new office locations.
Running Head: Case Study 1: Netflix11Ratios The last section to be reviewed for this paper is the ratio section. When first looking at the return on equity since 2015, there has been an increase of this by more than 18%. Second, the

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