Which of the following products represents a shift from atoms to bits?Apple Pay (vs. Cash)
Kindle (vs. Books)
Craigslist (vs. Newspaper Ads)
iTunes (vs. CDs)By mid-2019, ____ announced it had over 150 million paying subscribers worldwide, and over 60 million in the United States.NetflixIdentify each statement as true concerning Netflix's early relationship with industry analysts.Many analysts doubted the firm would succeed when confronted by increased competition from well-known rivalsThe term disintermediation refers to removing an organization from the ______ channel.Distribution______ filtering is the name for classification of software that monitors trends among customers and uses this data to personalize an individual customer's experience.CollaborativeInternet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that internet businesses are more _____.ScalableWhich statement is true of Netflix's streaming business?Content providers enjoy greater bargaining power as the sole source for unique titles unavailable from any other source.Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over traditional video stores?Larger entertainment selectionA manager's decision making is often shaped by their perception of the competition. Which of the following does Netflix see as being in competition with the firm?Amazon Prime
video gamesWhile the size of the tail in the long-tail phenomenon is disputable, one fact that is critical to remain above this debate is that:Selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match.Hastings was correct in understanding that _____ is where consumers, technology, and industry are headed.StreamingNetflix spending on original content is _____.Dramatically increasingThe concept of _____ refers to restricting content to a given distribution channel for a specified period of time.WindowingHow are the DVD-by-mail and streaming businesses similar?
A. access to content
B. rival intensity
C. cost structure
D. laws that govern distributionNoneHow is scale important to Netflix's streaming business?A larger firm with more customers can spend more on content licenses.The long tail is a phenomenon whereby firms can make money by:Offering a selection of products or services vastly greater than conventional retailers.Netflix offered its subscribers a selection of over one hundred thousand DVD-by-mail titles, while other video rental firms can only offer as many as three thousand. This presents a significant _____ for Netflix over its rivals.Scale advantageIdentify each statement as true concerning why HBO is considered a worthy rival to Netflix.HBO has sole-ownership of high-demand, original content.Why is the "First-Sale Doctrine," including understanding when it does and doesn't apply, relevant to Netflix?It means content acquisition costs for DVDs are more predictable than streaming costs.
In cases of streaming media, it facilitates a shift of bargaining power to content suppliers.Which factors led to Netflix dominance versus Blockbuster and Walmart?Advantages created by leveraging technology and timingBy going public, Netflix encountered competition from the large, established firms Walmart and Blockbuster. What aspect of Netflix going public lured these firms into the market?By going public, Netflix was required to disclose its financial position.