ch 10 netflix vid

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With the influx of highly competitive video streaming options, there is the credible threat of video streaming services becoming commodities. This has the effect of making demand for streaming video ________________. A. exceed supply B. elastic C. inelastic D. invert E. explode

B. elastic

In the past, Netflix's superior library of titles allowed the company to freely engage in value-based pricing. Now, other companies like Disney and Apple are posing a significant threat to Netflix's dominance. This may require Netflix to shift to a strategy of ________. A. good-value pricing B. break-even pricing C. competitive-effect pricing D. cost-plus pricing E. differentiated pricing

C. competitive-effect pricing

If Netflix should want to charge a price premium for its streaming service, it would need to employ a ________ strategy by adding content or features that others simply can't match. A. cost-based B. good-value C. customer-satisfaction D. variable price E. competition-based

C. customer-satisfaction

For Amazon, Disney, and Apple, streaming video is a small component of a big portfolio of businesses. This puts pressure on Netflix as it relies on streaming video entirely in order to _______________________. A. continue as market leader B. capture market share C. generate profits D. grow its portfolio of content E. outdo the competition

C. generate profits

For streaming video companies, operating the web portal is an example of __________________ while royalties for each view is an example of ___________________. A. a price ceiling; a price floor B. a variable cost; a fixed cost C. inelasticity; elasticity D. a fixed cost; a variable cost E. a variable cost; a base cost

D. a fixed cost; a variable cost


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