Although Netflix claims that the decision was made in order to free up resources and better focus on streaming content, we think that the company may be looking to funnel more customers towards streaming, increasing profitability of this segment in the face of rising content acquisition costs.
In 2013, we will continue to take additional actions at our SANYO Semiconductor Products Group to reduce the break-even level and return this operating segment to profitability.
Nokia has been able to leverage its new Asha series of feature phones to manage the decline and maintain decent profitability of a shrinking product segment.