Netflix Has Used the Long Tail in the DVD-By-Mail Business

Multiple Choice

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?

A) Discounted fees for marketing some of the less-popular titles from the studios
B) A cut of the subscription revenue from every disk sent out by Netflix
C) Greater bargaining power with movie rental firms such as Netflix, Blockbuster, and Wal-Mart
D) Lower costs related to screening movies in cinemas by releasing them straight on DVD
E) An equal share of revenue from the digital distribution model through online streaming