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

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?

Although sometimes referred to as "rental," Netflix's model is really a substitute good for conventional use-based media rental.

Durable brands are built through customer experience.

One challenge that Netflix faced was that Blockbuster and Walmart were able to quickly extend their strong brands to also become synonymous with a DVD-by-mail subscription service.

A low _____ is usually key to a firm's profitability because acquiring a customer is more expensive than keeping one.

User ratings act as _____ for Netflix's customers.

The phrase __________________ refers to the media industry practice of making content available through a given distribution channel for a specified time period, usually under a different revenue model.

At Netflix, the majority of the DVD titles shipped are from back-catalog titles, not new releases.

Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over traditional video stores?

Although Netflix had a larger distribution network than rivals, other firms could build a similarly large warehouse network. Why was the size of the Netflix DVD-by-mail customer base critical to repelling rivals?

A major factor in Netflix's success is competitive advantage.

Today the Netflix is so focused on _____________ that it offers its streaming-only subscription as the default option for consumers.

Brand and advertising are synonyms for the same concept.

Netflix gets to retain the entire subscription revenue for every disc sent out to a customer.