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

Which of the following is true of Netflix?

Within the DVD-by-mail segment, Netflix remained bigger than both Wal-Mart and Blockbuster.

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

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

_____ is a situation where two or more firms are both competitors and collaborators, or "frenemies."

Netflix enjoys the triple scale advantage of the largest customer base, the largest selection, and the largest network of distribution centers. This can be attributed to:

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.

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 _____.

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

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

In the context of the Netflix case, _____ refers to an extremely large selection of content or products.

The high degree of customer satisfaction that Netflix enjoyed is tightly linked with the firm's sized-based advantages.

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

Collaborative filtering is a classification of software that:

________________ refers to a ruling which states that a firm can distribute physical copies of legally acquired copyright-protected products. This enables services such as libraries and video rental, but this right does not apply to streaming digital copies.

The marginal cost of digital goods is typically considered to be _____________

Brand and advertising are synonyms for the same concept.

User ratings act as _____ for Netflix's customers.

Durable brands are built through customer experience.

In exchange for a percentage of the DVD-by-mail subscription revenue for every disk sent out by Netflix, movie studios offer Netflix: