THE MONEY BALL

The tension in the conference room is palpable. You've conquered the data, crafted the narrative, and envisioned the content pipeline. Now, it's time to delve into the heart of the matter: money. Your mission is to convince The Originals that Netflix Originals can be a financially sound investment.

Mission Brief: Based on the past 3 years of subscriber data (2011-2013), calculate the average growth rate for the past 2 years (2012-2013). Use this growth rate to project the number of subscribers for the next year (2014) who might be enticed by Netflix Originals. Then, considering the revenue per subscriber for your 3 different subscription plans (Basic, Standard, Premium), calculate the projected revenue for each plan in 2014. Remember, this is a delicate balancing act between bold investments and long-term financial stability.

Dilemmas and Conflicts:

Predicting the Future: Projecting future subscriber growth is inherently risky. How can you account for unforeseen market fluctuations and potential competition? Striking the right balance between optimism and caution is crucial.
Cost vs. Value: Original content comes with a hefty price tag. How can you convince The Originals that the projected revenue increase from new subscribers will outweigh the production costs and justify the investment?
Plan Perfection: Each subscription plan offers different revenue streams. How can you accurately estimate the distribution of subscribers across these plans, ensuring a realistic projection of total revenue?

Your Moment of Truth: Armed with historical data, growth rate calculations, and financial models, you take center stage. You present your subscriber growth projections for 2014, highlighting the potential impact of Netflix Originals on subscriber acquisition. You then delve into the projected revenue for each subscription plan, using clear charts and compelling arguments. Some executives remain cautious, questioning the accuracy of your projections and the potential risks. Others are intrigued by the possibility of significant revenue growth.

Will your financial projections convince The Originals that Netflix Originals is a worthwhile investment? Can you demonstrate a clear path to profitability, balancing potential risks with the promise of future financial rewards? The success of Round 3 hinges on your ability to analyze historical data, make sound assumptions, and present your findings in a clear and compelling manner. The future of Netflix Originals depends on your financial forecast.

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