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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Why is bargaining power shifting to content providers as the video content industry shifts from atoms to bits?

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Churn rate is a term that refers to the:

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Netflix's initial revenue model was based on a flat-rate monthly subscription fee rather than a per-disc rental fee.

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Describe Netflix's streaming video business model.

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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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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.

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Netflix is now crunching and comparing user preferences across 75 nations, worldwide - a level of profile detail and user preferences that no one can come close to matching.

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

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For traditional retailers selling physical goods, _____ is the biggest constraint limiting a firm's ability to offer customers what they want and when they want it.

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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:

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When firms enjoy economies of scale they:

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Marginal costs:

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How does the Cinematch recommendation system work?

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Brands are built through _____.

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The Netflix customer experience was always weaker than the in-store experience of DVD rental firms, which had human staff. However, consumers were willing to overlook their dissatisfaction given Netflix's other benefits.

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Walmart and Blockbuster were well-known firms. Why weren't they able to leverage their brands to compete against Netflix?

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Crowdsourcing is:

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Explain the long tail phenomenon at Netflix.

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

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Fixed costs vary according to production volume.

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