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Question on the case: Madflix.com

Question to this case

Madflix.com
New answer on Nov 18, 2020
2 Answers
779 Views
Anonymous A asked on Nov 17, 2020

This is kind of a weird case in its calculation. Why does the case focus on calculating the revenue per customer per segment to calculate the gross profit margin if we already have the price per subscription unit sold?

Basically the gross profit margin would be -> "Price Sub Model 1/2/3 - Variable Cost per Rental * Movies Rent"

Am I getting this wrongly?

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Ian
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Content Creator
 replied on Nov 17, 2020
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

I'm not sure I entirely follow your question - could you clean it up and articulate a bit more clearly?

To clarify, are you talking about this portion of the case?

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Clara
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 replied on Nov 18, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

TBH, I agree with u ;)

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How does the subscription model work?

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