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 E7.49 per month, which converts to U.S. $8.34 during the time of expansion. Calculate the annual market sales potential for Spain in euros and U.S. dollars. There are 18,085,700 television households in Spain, with 80 percent having high-speed Internet. Assume 40 percent of the households are willing and able to purchase the service and would purchase one subscription at an average price of 7.49 per month ($8.34). The number of households in the market can be estimated as 5787424. (Round to the nearest whole number.) The quantity purchased by household per year is 12. (Round to the nearest whole number.) Determine the average prices per year. (Round to the nearest cent.) Euro USD € 89.88 $100.08 Average price per year Estimate the values of the annual market sales potential for Spain. (Round to the nearest whole number.) Euro USD Annual market sales € potential, million

Answer 1

Answer 1 Prices offered are: (in Euros) € 7.49 Per Month in USD) $8.34 Per Month wwww. As such yearly average price: € 7.49 * 12 € 89.88 (in Euros) - wwww. $8.34 12 $100.08 in USD) _ wwww Euro USD Average price per year $100.08 €89.88

Answer 2 Number of television households in Spain= 18,085,700 Households having high speed internet = 18,085,700* 80% Number of households willing to purchase 18,085,700 80% * 40%=5787424 Estimated amnual market sales potential for Spain purchase Number of households willing to Average piice per year (i) in Euro 5787424* 89.88= € 520,173,669.12 or € 520 million 0ww. 5787424* 100.08 $579,205,393.92 or $579 million (i) in USD Euro USD Annual market sales potential, million € 520 €579