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

Netflix offered its subscribers a selection of over one hundred thousand DVD-by-mail titles, while other video rental firms can only offer as much as three thousand. This presents a significant _____ for Netflix over its rivals.

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

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.

Even if Netflix gave Cinematch away to its rivals, they would still not be able to make the same kind of accurate recommendations as Netflix. This is because of Netflix's _____.

How is scale important to Netflix streaming business?

Which of the following is true of Netflix streaming?

Ownership of digital assets isn't always as it appears to consumers. Many Netflix original series like "House of Cards" are actually not own by Netflix, and other firms can license these titles, while Netflix may need to acquire additional rights to stream these titles overseas.

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

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

Netflix has used the long tail in the DVD-by-mail business to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from taking advantage of the Netflix model targeted at increasing the firm's long-tail offerings?

Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more _____.

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

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

Provide a brief description of the basics of the Netflix DVD-by-mail business model.

The practice of windowing involves:

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?

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

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?

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

How is Comcast vertically integrated?