Revenue growth down from 3% to 2% is significant, especially considering that’s an even bigger hit to growth in profits. They want to make their investors happy, they have a perfectly reasonable PR cover to raise their prices by a few dollars a month, so they’ll do it. What part of this is confusing?
The guild then compared these costs to companies’ annual revenues and calculated the percentage that these costs would represent compared to those profits. The costs would account for 0.091 percent of Disney’s revenue, 0.214 of Netflix’s, 0.108 percent of Warner Bros. Discovery’s, 0.148 percent of Paramount Global’s, 0.028 percent of NBC Universal’s and 0.006 percent of Amazon’s, the WGA claims.
Are you really going to claim that 0.214% less revenue justifies a price hike?
one of their large investors saying “hey, hike prices” justifies a price hike. A profit reduction equal to .214% of revenue (and other concessions that could hurt the company in other ways) is far more than the amount of justification they need.
Revenue growth down from 3% to 2% is significant, especially considering that’s an even bigger hit to growth in profits. They want to make their investors happy, they have a perfectly reasonable PR cover to raise their prices by a few dollars a month, so they’ll do it. What part of this is confusing?
Again, less than 1%. Read the article.
Here, I’ll even paste the relevant part:
Are you really going to claim that 0.214% less revenue justifies a price hike?
one of their large investors saying “hey, hike prices” justifies a price hike. A profit reduction equal to .214% of revenue (and other concessions that could hurt the company in other ways) is far more than the amount of justification they need.
I guess your definition of ‘justified’ is much more capitalistic than mine.