(Answered) : 1.Suppose that 1% of customers will switch from Both to Streaming only in Q4, but Netflix will invest more in acquisition ($18 p

1.Suppose that 1% of customers will switch from Both to Streaming only in Q4, but Netflix will invest more in acquisition ($18 per new subscriber – add to Cost of Revenues) and will realize a 2% increase in New Streaming Only customers. What is the Q4 Operating Income?

2.Suppose that the price is lowered to $12.99 for Both. Assume that customers no longer switch from Both to Streaming in Q4 and 1 Mil additional customers are acquired for Both in Q4 ($18 per new subscriber – add to Cost of Revenues). Calculate the Q4 Operating Income.

3.Suppose that unlimited streaming is discontinued