Question

In: Finance

How do income and total assets fluctuate with changes in key assumptions? the key assumptions are...

How do income and total assets fluctuate with changes in key assumptions?

the key assumptions are not provided. The questions is generalized for a streaming platform.

Solutions

Expert Solution

Income and total assets will be fluctuating with change in assumptions for streaming platform because these streaming platform are having a majority of their revenues from online subscription data and these online subscription data of individual are dependent upon lack of physical movement which can be seen in today's world as physical movement have completely been stopped due to fear of a contagion from coronavirus.

In the current scenarios, the online business of streaming has gained traction on the upside because the the revenue has increased drastically due to large number of people taking the subscription of these online streaming services because they had cannot have access to be cinemahall and large number of movies are also getting switched to online platforms for their release and it is meaning that a large number of income generation opportunity are getting established for the online services and there has been an increase in the revenues as well as bottom line for these companies and it is getting transpired into you better services for the customers as well and they are increasing their volume by adding a large number of subscribers.

There are various key assumptions in relation to these online streaming services provider and they will be believing that they have a higher amount of uniformity because people will always be trying to have a online access than a physical access of viewing content, so these online streaming services providers have a better sustainability and growth rate in the long run and assumptions could be that they are less exposed to risks of dynamism and their better placed to gain a large amount of market share so these could be helpful in order to increase their overall organisational value by increasing of their customer base.


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