Correct Answers
By going public, Netflix encountered competition from the large,
established firms Wal-Mart and Blockbuster. What aspect of Netflix
going public lured these firms into the market? Correct Answer-By
going public, Netflix was required to disclose its financial position.
Collaborative filtering is a technology that allows customers to meet and
select titles for viewing parties. Correct Answer-False
Today Netflix is so focused on _____________ that it offers its
streaming-only subscription as the default option for consumers. Correct
Answer-digital distribution
How is scale important to Netflix streaming business? Correct Answer-
A larger firm with more customers can spend more on content licenses
The practice of windowing involves: Correct Answer-making content
available to a distribution channel for a specified time period under a
different revenue model.
Why is the "First Sale Doctrine," including understanding when it does
and doesn't apply, relevant to Netflix? Correct Answer-It means content
acquisition costs for DVDs are more predictable than streaming costs.
&
, In cases of streaming media, it facilitates a shift of bargaining power to
content suppliers.
While the size of the tail in the long tail phenomenon is disputable, one
fact that is critical to remain above this debate is that: Correct Answer-
selection attracts customers, and the Internet allows large-selection
inventory efficiencies that offline firms can't match.
Which of the following is true of Netflix streaming? Correct Answer-
Content providers enjoy greater bargaining power as the sole source for
unique titles unavailable from any other source.
Netflix competitors in streaming are small and mostly unprofitable.
Correct Answer-False
A manager's decision making is often shaped by its perception of the
competition. Which of the following does Netflix see as being in
competition with the firm? Correct Answer-video games
magazines
DVD's
Amazon Prime
Zara's implements limited production runs to Correct Answer-reduce the
risk of making a mistake with a collection.
offer exclusivity.