ACC270 Ch 3 quiz ISU

Which of the following represents an advantage enjoyed by the Netflix DVD-by-mail business over traditional video stores? A. Lower technology overhead B. Lower shipping expenses C. Larger entertainment selection D. Higher energy costs E. Higher churn rates

C. Larger entertainment selection

How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?

Cinematch is linked to warehouses and recommends movies that are likely to be in stock.

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

Disintermediation

Netflix can send out any DVD it buys because of a Supreme Court ruling known as the _____.

First Sale Doctrine

Choose the correct answer: Why is the "First-Sale Doctrine," including understanding when it does and doesn't apply, relevant to Netflix? A. It means content acquisition costs for DVDs are more predictable than streaming costs. B. It means that content acquisition costs for streaming are more predictable than DVDs. C. In cases of streaming media, it facilitates a shift of bargaining power to content suppliers. D. In cases of streaming media, it facilitates a shift of bargaining power to firms paying to license content from suppliers. E. None of the above. F. a & d G. b & c H. a & c I. b & d

H. a & c

Marginal costs:

are associated with each additional unit produced.

Collaborative filtering is a classification of software that:

monitors trends among customers to personalize an individual customer's experience.

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:

of the brutally competitive nature of the consumer electronics business.

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:

selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match.

The phrase _____ refers to the media industry practice of making content available through a given distribution channel for a specified time period, usually under a different revenue model.

windowing