Question

Video Streaming Services (e.g., Netflix and Hulu) provide internet subscription services streaming TV and movies. For a fee, subscribers can instantly watch unlimited TV shows and movies streamed over the internet on their TVs, computers and mobile devices. How do you think these firms should recognize subscription revenues?

Answer 1

In the event that we take for instance Netflix, a video web-based feature accessible on most stages and gadgets, we can utilize their model to all the more likely comprehend income acknowledgment.

Netflix fuses SaaS innovation and this enables the business to deliver web based programming to run their administration for shoppers to watch movies and shows.

Netflix charges a membership expense of £5.99 per month for its essential bundle (after first-month free advancement) and will be repeating till the buyer drops.

Netflix will charge £5.99 consistently on a particular date or every month on the date you joined and as long as this installment is made every month, Netflix will give you proceeded with continuous admittance to its real time feature.

On the principal day of when your membership gets chargeable, Netflix will charge your record £5.99 and this cash goes into Netflix's record. Despite the fact that Netflix took £5.99 from the buyers account this is as yet not totally thought to be perceived income in light of the fact that Netflix needs to convey what they guaranteed from their video web-based feature. The client has paid ahead of time and Netflix needs to satisfy its commitments of 30 days worth of real time features.

On the off chance that Netflix just gives the client 2 days administration for reasons unknown and the administration removes then the this becomes deferred income. Move should be made by Netflix to restore any monies owed back to the client or convey what they guaranteed making an elective game plan as a result of disappointments in conveying their administration.