8:56 W N87% EXHIBIT 3 Estimated Number of Internet Users in Selected Countries as of January 2023 Milions of Country Internet Users Country Milions of Internet Users China 1,050.0 Vietnam 78.0 India Germany 77.5 United States 311.3 United Kingdom Indonesia 212.9 Thailand 61.2 Brazi 181.8 59.9 Russia 127.6 Italy 500 50.6 Nigeria South Korea Japan Mexico 1025 Spain Philippine Egypt 85.2 80.8 Argentine Poland 39.8 36.7 Source Statista, www.statista.com (accessed March 23, 2023 watching entertainment would come from sources that streamed programming directly to their Internet- connected devices, thereby providing Netflix with a long runway for growing its business. Exhibit 3 shows the number of Internet users, by country, with the ability to watch streamed entertain ment on any Internet-connected device. A SAMPLING OF NETFLIX'S COMPETITORS IN THE GLOBAL MARKET FOR STREAMED VIDEO SUBSCRIBERS Going in 2020, Netflix' principal direct competi tors included Amazon's Prime Video, The Walt Disney Company (Disney Plus, Hulu), Warner Bros. Discovery's HBO Max, Apple TV+, Comcast's new Peacock offering, and Paramount Plus, all of whom had professed or exhibited a strategic intent to rank among the industry leaders-YouTube was not considered a direct competitor because its free and paid video content was distinctly different from 1° the titles offered by Netflix and its direct competi tors. Following is a brief description of the media resources and competitive capabilities of the chief rivals Netflix expected to battle in competing for streamed entertainment subscribers in countries. across the world. Amazon's Prime Video Amazon competed directly with Netflix via its Amazon Prime membership service, which included access to the content on Amazon's Prime Video streaming service as well as free shipping on par chases at Amazon.com. In 2023, individuals and households could become an Amazon Prime member for a fee of $139 per year or $14.99 per month (after a one-month free trial); there was a discounted price for students and qualifying government assistance recipients of 50% off and a discount for seniors of $6.99 per month. Membership in just Prime Video was $8.99 per month. Amazon reported on April 29, 2021 that it had over 200 million paying Prime members worldwide. Going into 2023, Amazon very likely had about 220 million Amazon Prime members globally, although all Prime members did not use the Prime Video benefit. In 2022. Amazon had net sales 0-62 PART 2 Cases in Creting and Executing Strategy revenues of $514 billion, of which some $35.2 billion represented revenues from subscription services. While Amazon had originally created its Amazon Prime membership program as a means of providing unlimited two-day shipping (more recently, one-day shipping in many locations and 2-hour grocery delivery in 2,000 cities) on Prime-eligible items to customers who ordered merchandise from Amazon and wanted to receive their orders quickly. in 2012 Amazon began including movie and music streaming as a standard benefit of Prime member ship. Amazon Prime members were not, however, eligible to view every title in the Prime Video library for free; titles that were not Prime eligible could be watched on a pay-per-view basis or else purchased. Going into 2023, many Amazon Prime members did not utilize their Prime Video membership benefit (Amazon did not disclose the overall percentage). Another video benefit of Amazon Prime member- ship was the ability to use the Prime Video app on their Internet-connected device to gain immediate access to subscribe to the content of some 100 enter- tainment providers that had become Prime Video Channel Partners. In 2010, Amazon established Amazon Studios to oversee the development and production of new in-house original movies and multi-episode series; approximately 200 new original titles were released during 2015-2018. In 2017 and continuing forward, Amazon began a strategic initiative to upgrade its content library, with both higher caliber new origi nal content and licensed content. As of early 2023, Amazon Prime Video had an estimated 10, 400 titles in its content library for the United States." Amazon paid the National Football League $65 million a year for three seasons starting with 2017 season to live stream Thursday Night Football games globally to Prime Video members in 200 countries (these broadcasts attracted more than 18 million total viewers over 11 games in 2017). In 2021 Amazon agreed to pay the NFL $11 billion ($1 bil lion per year) for a new 11-year media rights pack- age to exclusively live stream 15 Thursday Night Football games and one preseason game, borin ning with the 2022 season and running through the 2033 season. During the 2022 NFL season. Amazon's Thursday Night Football telecasts an average audience of 11.3 million viewers, a of the telecasts made the list of Variety's Top 100 Primetime Telecasts of 2022. Amazon Studios spent a reported $250 million for licensing rights to Lord of the Rings with plans for spending up to $1 billion to produce 5 seasons of episodes. The first season of Lord of the Rings: The Ring of Power, which premiered on Labor Day 2022, attracted more than 100 million viewers worldwide. was the most watched Amazon Original series in every region of the world (with more than 24 billion minutes streamed), and drove more Prime sign-ups worldwide during its launch window than any previ ous Prime Video content. Over the years 2015-2023, Amazon Originals received 241 nominations and 72 wins at various movie and TV awards shows. In 2022, Amazon's new original content included The English, Dr. Seuss Baking Challenge My Policeman, The Terminal List, documentary Good Night Oppy: the fourth volume of Rihanna's annual fashion experience Savage X Fenty, the third season of Tom Clancy's Jack Ryan, and the first season of Jack Reacher (based on Lee Child's best- selling series of crime novels featuring a veteran military police investigator and two successful Jack Reacher films starring Tom Cruise): these programs were available globally in over 240 countries territories. Amazon also had a deal that br new Universal movies to Amazon Prime Vid months after they appeared on NBCU Peacock streaming service. In addition, Amazon added HBO Max (renamed Maxi to its Prime Video Channels lineup in the b States for a subscription of $15.99 per month ( lected by Prime Video), Prime Video members could gain access to approximately 15,000 hours of Max's premium content without having to switch over to the Max app. Prime Video Channels was a feature that enabled entertainment companies to use the Prime Video app installed on most TVs to offer Prime Video's large member base monthly sub- scriptions to their content. Streaming services like Warner Bros. Discovery's Max, Paramount+, Starz, Showtime, AMC+, Freevee and Boomerang (both free with ads), Cinemax, MGM+, Acorn TV, and many others had elected to become a Prime Video Channel Partner because sach partnership enabled substantial numbers of new subscrib sing Prime Video Channels to check 5 of 24 ||| ୮ R 1. Read the case, keeping in mind the textbook topic(s) the case covers 2. Read the Case Analysis section of the textbook 3. Written Document a. Provide a BRIEF description of the situation b. Update the situation to today(2025) using library and/or online resources (the company web site is a great place to start) i. This means to take into consideration the geo-political and economic environment the firm is operating in NOW. ii. Compare and contrast now vs. when the case takes place c. Cite sources of data not included in the case, using APA format i. Use at least TWO peer-reviewed articles ii. Do NOT rely solely on what you know about the company iii. Other credible sources are: WSI NYT Wash Post The Guardian, the firm's web site and 10K filings (if pub Meet the new Teams video d. Answer the questions at the end of the case if any, in light of the topic of the chapter e. DO NOT spend more than 1/3 to 1/5 a page describing the situation. f. No more than 3 pages, excluding References and Cover Page. 4. Presentation a. No more than 15 minutes. b. 5-7 slides, including the introductory slide C. Address the important facts, decisions, recommendations d. If there is a recommendation needed, make one and justify it using analysis of facts. 5. Your written analysis and your oral presentation should be the same, with the written document providing more detail. 6. Who is your audience? Not Me. Your audience is middle and upper level management of the firm in question. 7. Who are you? An up-and-coming Management trainee who has been tasked with helping the firm to understand the situation in the case.