MARKETING QUESTION: Video streaming service Netflix is expanding rapidly around the globe. It is currently available in 50 countries with the goal of expanding to 200 countries by the end of 2016. The next countries to get Netflix are Italy, Spain, and Portugal. Similar to Netflix's other European offerings, service will be offered at a price of euro€6.47 per month, which converts to U.S. $7.03 during the time of expansion. There are 19,069,600 television households in Spain, with 70 percent having high-speed Internet. Assume 45 percent of the households are willing and able to purchase the service and would purchase one subscription at an average price of euro€6.47 per month ($7.03) Calculate the annual market sales potential for Spain in euros and U.S. dollars. Is the dollar strong or weak compared to the euro? Why are U.S.-based international companies concerned when the U.S. dollar is strong compared to other currencies? The number of households in the market can be estimated as (Round to the nearest whole number.)
MARKETING QUESTION: Video streaming service Netflix is expanding rapidly around the globe. It is currently available in 50 countries with the goal of expanding to 200 countries by the end of 2016. The next countries to get Netflix are Italy, Spain, and Portugal. Similar to Netflix's other European offerings, service will be offered at a price of euro€6.47 per month, which converts to U.S. $7.03 during the time of expansion. There are 19,069,600 television households in Spain, with 70 percent having high-speed Internet. Assume 45 percent of the households are willing and able to purchase the service and would purchase one subscription at an average price of euro€6.47 per month ($7.03) Calculate the annual market sales potential for Spain in euros and U.S. dollars. Is the dollar strong or weak compared to the euro? Why are U.S.-based international companies concerned when the U.S. dollar is strong compared to other currencies? The number of households in the market can be estimated as (Round to the nearest whole number.)
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