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. 8:58 W N 86% EXHIBIT 5 Netflix's Revenue and Membership Performance by Geographic Region, 2020-2022 (in millions, except for average monthly revenues per paid membership) 2020 2021 2022 United States and Canada Revenues Paid Memberships (end of period) $11,455.4 73.9 Paid Net Additions (Losses) 6274 $12,972.1 75.2 1.279 $14,084,6 74.3 (0.919) Average Monthly Revenue per Paying Membership $ 1332 $ 14.55 $ 15.86 Europe, Middle East, and Africa Revenues $ 7,772.3 Paid Memberships (at end of period Paid Net Additions (Loss) 73.73 $ 9,700.0 72.95 $ 9,745.0 73.53 14.940 2.093 Average Monthly Revenue per Paying Membership Latin America $ 10.72 $ 11.63 $ 10.99 Revenues Paid Memberships (at end of period Faid Net Additions (Losses) $3.156.7 37.54 $ 3,577.0 39.95 $ 4,070.0 41.70 1.43 Average Monthly Revenue per Paying Membership Asia-Pacific $ 7.45 S 7.73 $ 8.48 Revenues $ 2.372.3 $ 3,2566 $ 3,570.2 Paid Memberships (at end of period 25.49 32.63 38.02 Paid Net Additions (Losses 9.26 Average Monthly Revenue per Paying Membership Global Totals $ 9.12 $ 9.56 $ 8.50 Streaming Revenues DVD Revenues Total Revenues Global Streaming Pad Memberships at end of period Paid Net Additions (Losses) $24,756.7 239.4 24,996.1 203.7 $29,515.5 182.3 29.697.8 $31,469.9 145.7 31,615.6 221.8 230.7 8.903 $ 10.91 $ 11.67 S 11.76 Average Monthly Revenue per Paying Membership Source: Netflix, 2022 10-K report, pp. 20-21. are shown in Exhibit 7. Because Netflix was past the most cash intensive phase of building an extensive library of original content and because the company generated free cash flows of $1.6 billion in 2022 and expected at least $3.5 billion in free cash flow in 2023, Netflix's top executive team was confident that Netflix would be able to keep its long-term debt ($14.5 billion as of March 31, 2023) within the tar- geted $10 billion to $15 billion range and have suf ficient cash to repay the outstanding senior notes as they matured. The company strived to maintain a minimum cash and cash equivalent balance of two months revenue (roughly $5.4 billion based on Q1 2023 revenue). C-78 PART 2 Cases in Crating and Executing Strategy EXHIBIT 6 Netflix's Quarterly and Full-Year Performance by Geographic Region, 2022 (in millions, except for average monthly revenues per paid membership) United States and Canada Three months ended March 31, 2022 June 30, 2022 Sept. 30, 2022 Dec. 31, 2022 Revenues Paid memberships (at end of period) $3,350 74.58 Paid net additions Average monthly revenue per paid $14.91 $ 3.538 73.28 (1.30) $15.95 $ 3,602 73.39 0.10 $16.37 $ 3,595 74.30 091 $16.23 $ 14,085 73.30 1921 $ 15.86 membership Europe, Middle East, and Africa Revenues Paid memberships (at end of period) Fold net additions losses) $ 2.562 73.73 1.301 $ 2,457 72.96 73.53 57 $2,350 76.73 3.20 $9,745.0 78.73 2.69 Average monthly revenue per paid members $ 11.55 $ 11.17 $ 10.81 $ 10.43 $ 10.99 Latin America Revenues Paid membership at end of period) Paid net additions (losses) Average monthly revenue per paid 39.61 (35) $ 1,030 39.62 0.01 $ 1,024 3994 31 $ 1.017 $4,070.0 41.70 1.75 1.74 $ 8.67 $ 8.30 $ membership Asia-Pacific Revenues $ 917 Paid memberships at end of period) Paid net additions (losses) Average monthly revenue per paid 33.72 1.09 908 34.80 1.CB S 889 36.33 143 $ 857 $ 38.02 1.80 $9.21 $803 $ 7.69 $ membership Global Streaming Revenues $7,828.0 $7.9330 Paid memberships (at end of period) Paid net additions fosses 221.64 (20) Average monthly revenue per paid $11.21 10.97) $11.45 $7,891.0 223.09 2.41 $ 11.36 $7.8190 230.75 7.66 $31,470.0 230.75 8.90 $ 10.90 $11.76 membership Source: Company Excel spreadsheet regional information for 2022, posted in the investors section as pert of the company's report of Fourth Quarter 2022 Franceless posted at www.netflix.com, accessed March 27, 2023, and Net 2022 10-K report. 20 Netflix's first priority for its cash was to reinvest in its core business and to fund new opportunities like gaming and ads, followed by selective acquisitions." It bought back 1.2 million shares for $400 million in the first quarter of 2023 and planned to accelerate its share repurchases over the course of 2023. ||| %