ABSTRACT This case describes an equity investment scenario in the context of the COVID‐19 pandemic. A fictional decision‐maker, Amandeep Singh, is considering whether or not to invest in Netflix, Inc. (Netflix). Netflix has benefited from changing habits during the pandemic, but Singh questions whether those benefits will persist post‐pandemic. To make his decision, Singh needs to perform a qualitative analysis of the video streaming industry and Netflix itself before moving to a quantitative analysis of Netflix's performance. To properly assess performance, Singh needs to fully understand Netflix's accounting methods and estimates for content assets—especially original content. The case is ideally suited to an MBA or Executive MBA audience. Students can easily engage with the case since they will be familiar with the company and industry. This familiarity allows for a general discussion about the industry's future and key success factors. The case provides an opportunity to cover core financial statement analysis concepts and drives home the importance of understanding accounting judgments when assessing firm performance.

Darren Henderson

Accounting Perspectives

Accounting Perspectives provides a forum for peer-reviewed applied research, analysis, synthesis and commentary on issues of interest to academics, practitioners, financial analysts, financial executives, regulators, accounting policy makers and accounting students.    Articles are sought from academics and practitioners that address relevant issues in any and all areas of accounting and related fields, including financial accounting and reporting, auditing and other assurance services, management accounting and performance measurement, information systems and related technologies, tax policy and practice, professional ethics, accounting education, and related topics. Without limiting the generality of the foregoing.

Accounting Perspectives is a forum for peer-reviewed applied research, analysis, synthesis, and commentary on issues of interest to academics, practitioners, financial analysts, financial executives, regulators, accounting policymakers, and accounting students. We seek articles from both academics and practitioners that address relevant issues in all areas of accounting and related fields, including financial accounting and reporting, auditing and other assurance services, management accounting and performance measurement, information systems and related technologies, tax policy and practice, professional ethics, accounting education, and related topics.

《Accounting Perspectives》是一个提供同行评审的应用研究、分析、综合和评论的平台，关注学术界、实践者、金融分析师、金融高管、监管机构、会计政策制定者和会计学生感兴趣的问题。我们欢迎来自学术界和实践界的文章，涉及会计及相关领域的各类相关问题，包括财务会计与报告、审计及其他保证服务、管理会计与绩效测量、信息系统及相关技术、税收政策与实践、职业道德、会计教育等主题。

Investing in Netflix: Accounting for Content Assets^*

ivySCI AI Smartly Parses PDF, Answers Researchers' Questions, and Helps You Understand Papers in Seconds

Journal Info

Category	Quartile
BUSINESS, FINANCE	3

Investing in Netflix: Accounting for Content Assets*

ivySCI AI Smartly Parses PDF, Answers Researchers' Questions, and Helps You Understand Papers in Seconds

Journal Info

Investing in Netflix: Accounting for Content Assets^*