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

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While it may be possible for rivals to match technology, the true exploitable resource created and leveraged through collaborative filtering technology is the data asset.

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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?

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

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In context to Netflix, what are the scale advantages associated with streaming?

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The term _______________ refers to the rate at which customers leave a product or service.

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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:

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The shift from atoms to bits does not stand to impact content creators, middlemen, and retailers.

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

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Marginal costs:

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Original content is an investment in allowing a firm to provide differentiated goods, a way to entice and retain customers with exclusive programming not available anywhere else.

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How does Netflix use collaborative filtering software to match movie titles with customer tastes? In what ways does this software help Netflix garner sustainable competitive advantage?

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The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call is known as _____.

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Why are streaming services considered more appealing to creative content creators than traditional TV?

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In 2010, Reed Hastings was named Fortune Magazine's "Business Person of the Year." Yet according to readings and class discussions, what was the Netflix CEO's "biggest strategic regret" to that point? What was his reason for giving this answer?

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In addition to serving as CEO of Netflix, Reed Hastings has also served as _______________ for two other leading tech companies, Facebook and Microsoft.

(Short Answer)
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How does the Cinematch recommendation system work?

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

(True/False)
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One of the benefits of Netflix moving internationally is that any title licensed from the United States also comes with the right to stream the title worldwide, regardless of customer geography.

(True/False)
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Physical retailers are limited by shelf space and geography (meaning the density of customers around a particular location).

(True/False)
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Costs that do not vary according to production volume are called _____.

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