Question 1

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

Accepted Answer

A)   Its marginal cost for title acquisition is zero as it is currently focusing on distributing digital content.
B)   It has the support of major studios such as Fox and Warner that have allowed it to stream any content the firm buys on DVD.
C)   Its cost of acquiring streaming content has fallen in the recent past due to its long tail advantages.
D)   It has attempted to counter rivals with exclusive content by securing exclusive streaming rights for several popular shows.
E)   From the beginning it has experimented with various streaming revenue models, including pay-per-view, download-to-own, and ad-supported content.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The shift from atoms to bits is realigning nearly every media industry.

Accepted Answer

A) True 
 B)False

Question 4

_____ refers to removing an organization from a firm's distribution channel.

Accepted Answer

A)   Disbarment
B)   Repudiation
C)   Annulment
D)   Disintermediation
E)   Revocation

Question 5

Churn rate is a term that refers to the:

Accepted Answer

A)   average number of recommended titles in a user's queue.
B)   rate at which the demand for a product or service fluctuates with price change.
C)   number of movie titles that are difficult to assign reliable user ratings.
D)   rate at which customers leave a product or service.
E)   number of new users that each existing user attracts through word-of-mouth and social sharing.

Question 6

If fast-lane access or bandwidth caps become commonplace, Netflix could suffer.

Accepted Answer

A) True 
 B)False

Question 7

How is Comcast vertically integrated?

Accepted Answer

The firm owns a cabl...

Question 8

Over ___percent of Netflix customers coming from outside the United States.

Accepted Answer

The answer of Over ___percent of Netflix customers coming from...

Question 9

An internal team at Netflix developed a prototype set top box to enable the direct streaming of content to customers' television sets. However, the idea of offering it to Netflix customers was dropped because:

Accepted Answer

A)   the market for online streaming was nascent and unprofitable.
B)   all major US cable firms built Netflix streaming into their set-top boxes.
C)   the Blu-ray standard requires streaming features, as well.
D)   of the brutally competitive nature of the consumer electronics business.
E)   the entire software team was recruited by TiVo after LinkedIn made it to target and poach rival talent.

Question 10

Firms with high churn rates are likely to be more profitable.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

How does the Cinematch recommendation system work?

Accepted Answer

A)   Cinematch develops a map of user ratings and steers users toward titles preferred by people with similar tastes.
B)   Cinematch gathers user ratings to calculate a gross average user rating which is continually updated with each subsequent user rating.
C)   Cinematch requests users to create profiles detailing their interests and preferences and serves recommendations accordingly.
D)   Cinematch uses a team of professional movie critics to create a comprehensive ranking system for each movie in its inventory.
E)   Cinematch ranks movies in two separate lists based on their critical and box office ratings, and subsequently alters user preferences.

Question 14

Netflix, the one-time "dot-com" upstart managed to achieve scale economies despite the fact that it faced two massive rivals: Blockbuster, a name synonymous with home video rental, and Walmart, not just a large firm, Fortune One, the largest firm in the US ranked by revenues. In what ways did Netflix offer size advantages over these rivals?

Accepted Answer

Netflix's scale in DVD-by-mail is based ...

Question 15

How does Netflix leverage its data asset, even as it has shifted from atoms to bits?

Accepted Answer

Netflix uses its substantial d...

Question 16

When firms enjoy economies of scale they:

Accepted Answer

A)   have a greater share of liquid assets than rivals.
B)   have bigger production facilities than their competitors.
C)   have a wider employee base than their competitors.
D)   leverage the cost of an investment across increasing units of production.
E)   leverage investment costs to decrease their subscriber acquisition costs.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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:

Accepted Answer

A)   traditional brick and mortar retailers offer selections that cannot be rivaled by Internet pure-plays.
B)   energy costs and worker wages drive up the costs of running stores like Netflix.
C)   selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match.
D)   the turnover rate of obscure titles in traditional video rental stores is only slightly higher than those for Internet pure-plays.
E)   the cost of store maintenance and real estate makes stores such as Netflix unattractive.

Question 20

_____ refers to a limit, imposed by the Internet Service Provider (e.g. cable or telephone company) on the total amount of traffic that a given subscriber can consume (usually per each billing period).

Accepted Answer

The answer of _____ refers to a limit, imposed by...

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

Firms with high churn rates are likely to be more profitable.

Correct Answer
verified

_____ refers to removing an organization from a firm's distribution channel.

Correct Answer
verified

If fast-lane access or bandwidth caps become commonplace, Netflix could suffer.

Correct Answer
verified

How does Netflix leverage its data asset, even as it has shifted from atoms to bits?

Correct Answer
verified
Netflix uses its substantial d...
View Answer

How does the Cinematch recommendation system work?

Correct Answer
verified

How is Comcast vertically integrated?

Correct Answer
verified
The firm owns a cabl...
View Answer

Correct Answer
verified
Netflix's scale in DVD-by-mail is based ...
View Answer

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

Correct Answer
verified

Churn rate is a term that refers to the:

Correct Answer
verified

Over ___percent of Netflix customers coming from outside the United States.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

_____ refers to a limit, imposed by the Internet Service Provider (e.g. cable or telephone company) on the total amount of traffic that a given subscriber can consume (usually per each billing period).

Correct Answer
verified

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

Correct Answer
verified

When firms enjoy economies of scale they:

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

An internal team at Netflix developed a prototype set top box to enable the direct streaming of content to customers' television sets. However, the idea of offering it to Netflix customers was dropped because:

Correct Answer
verified

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

Correct Answer
verified

The shift from atoms to bits is realigning nearly every media industry.

Correct Answer
verified

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

Firms with high churn rates are likely to be more profitable.

Correct AnswerverifiedShow Answer

_____ refers to removing an organization from a firm's distribution channel.

Correct AnswerverifiedShow Answer

If fast-lane access or bandwidth caps become commonplace, Netflix could suffer.

Correct AnswerverifiedShow Answer

How does Netflix leverage its data asset, even as it has shifted from atoms to bits?

Correct AnswerverifiedNetflix uses its substantial d...View AnswerShow Answer

How does the Cinematch recommendation system work?

Correct AnswerverifiedShow Answer

How is Comcast vertically integrated?

Correct AnswerverifiedThe firm owns a cabl...View AnswerShow Answer

Correct AnswerverifiedNetflix's scale in DVD-by-mail is based ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Churn rate is a term that refers to the:

Correct AnswerverifiedShow Answer

Over ___percent of Netflix customers coming from outside the United States.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ refers to a limit, imposed by the Internet Service Provider (e.g. cable or telephone company) on the total amount of traffic that a given subscriber can consume (usually per each billing period).

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When firms enjoy economies of scale they:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An internal team at Netflix developed a prototype set top box to enable the direct streaming of content to customers' television sets. However, the idea of offering it to Netflix customers was dropped because:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The shift from atoms to bits is realigning nearly every media industry.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Netflix uses its substantial d...
View Answer

Correct Answer
verified

Correct Answer
verified
The firm owns a cabl...
View Answer

Correct Answer
verified
Netflix's scale in DVD-by-mail is based ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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