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 ofeuro€8.97per​ month, which converts to U.S.​$10. 10during the time of expansion. Calculate the annual market sales potential for Spain in euros and U.S. dollars. There are18,822,900television households in​ Spain, with70percent having​ high-speed Internet. Assume55percent of the households are willing and able to purchase the service and would purchase one subscription at an average price ofeuro€8.97per month​($10.10)The number of households in the market can be estimated as ​(Round to the nearest whole​ number.)

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Asked Apr 15, 2019
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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€8.97
per​ month, which converts to U.S.
​$10. 10
during the time of expansion. Calculate the annual market sales potential for Spain in euros and U.S. dollars. There are
18,822,900
television households in​ Spain, with
70
percent having​ high-speed Internet. Assume
55
percent of the households are willing and able to purchase the service and would purchase one subscription at an average price of
euro€8.97
per month
​($10.10)
The number of households in the market can be estimated as
 
​(Round to the nearest whole​ number.)

 

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Expert Answer

Step 1

Total number of television households= 18,822,900

70% have access to high speed internet and 55 % of these households are able to subscribe

Hence, the number of potential households who can subscribe= 18,822,900*70%*55%= 7,246,817

 

Step 2

Monthly subscription price per household is Euro 8.97 or $10.10

So, the annual income from each household= Euro 8.97*12 =107.64 Euro/ $10.10*12= $121.2

So, the annual mark...

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