Exam 4: Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

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:

If fast-lane access or bandwidth caps become commonplace, Netflix could suffer.

By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs.

An internal team at Netflix developed a prototype set top box to enable the direct streaming of content to customers' television sets. However, the idea of offering it to Netflix customers was dropped because:

Cinematch develops a map of user ratings and steers users toward titles preferred by people with tastes that are most like theirs.

How does Netflix leverage its data asset, even as it has shifted from atoms to bits?

Firms with high churn rates are likely to be more profitable.

_____ refers to removing an organization from a firm's distribution channel.

How does the Cinematch recommendation system work?

Churn rate is a term that refers to the:

When firms enjoy economies of scale they:

_____ refers to a limit, imposed by the Internet Service Provider (e.g. cable or telephone company) on the total amount of traffic that a given subscriber can consume (usually per each billing period).

Netflix, the one-time "dot-com" upstart managed to achieve scale economies despite the fact that it faced two massive rivals: Blockbuster, a name synonymous with home video rental, and Walmart, not just a large firm, Fortune One, the largest firm in the US ranked by revenues. In what ways did Netflix offer size advantages over these rivals?

At Netflix, the marginal cost for digital goods is zero for all licensees.

The shift from atoms to bits is realigning nearly every media industry.

The Netflix work culture is in many ways similar to its peers.

Once Netflix became a public company, the firm was required to disclose its financial position and reveal it was on a profit march.

How is Comcast vertically integrated?

Which of the following is true about the Netflix streaming business?

Over ___percent of Netflix customers coming from outside the United States.