content creation to address the customers of all age group has also led to a growth in the sales of the products for Netflix. Alongside, local language content is driving the adoption of the product on a global scale. Increasing investments in local language content is reaping benefits for Netflix in countries like Korea, Japan and India, among others, leading to a growth in their revenue. (Link) o Explain which items do and do not vary with sales in your analysis Items varying with sales: Income Statement: Cost of Goods Sold, Marketing Expense, Technology & Development Cost, SG&A Balance Sheet: Cash & Cash Equivalents, Current Content Assets, Other Assets, Non-current content assets, Property & Equipment, Other Non- Current Assets, Other Current Content Liabilities, Accounts Payable, Accrued Expense, Deferred Revenue, Non-Current Content Liabilities, Other Non-Content Liabilities Items not varying with sales: Income Statement: Interest Expense, Interest and Other Income Balance Sheet: Short Term Investments, Short-Term Debt, Total Current Content Liabilities, Long-Term Debt, Shareholder’s Equity
o Justify your sales growth assumptions We have segment sales growth assumptions for Domestic Streaming, International Streaming and Domestic DVD business We took 45% growth for the International Streaming business (Outside of the US). This segment already had a y-o-y growth rate of ~60% which is not sustainable for the coming years since Netflix has already captured the untapped markets globally. We were thus conservative in our
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