Netflix

What is the downside of an early IPO?

An early IPO is risky because it makes financials public which draws competition to start looking. ex. Netflix had an early IPO which caused Blockbuster and Walmart to start sizing up Netflix.

What's the confusion between brand and advertising and why is Netflix such a good brand?

Brand is based off customer experience and advertising is just increasing awareness. Netflix is such a good brand because it leverages data to enhance customer experience.

What is collaborative filtering and how has Netflix utilized it?

Collaborative filtering is basically Netflix's recommender system. They used Cinematch. This enables a better user experience but Netflix leverages their data to make Cinematch work.

How do digital products differ from physical products and how has Netflix overcame these differences?

Digital products require more licensing the first sale doctrine does not really apply to online products. Netflix has overcame this by securing good licensing deals and creating its own products.

Why did firms find Netflix's market attractive, and why did many analysts incorrectly suspected Netflix was doomed?

Firms found Netflix's marker attractive because of scale and many analysts suspected Netflix was doomed because they underestimated the brand/customer experience associated with Netflix.

What role has market entry played in Netflix's success?

Market entry has allowed Netflix to get a competitive advantage with data from early collection and start building brand/customer experience.

How did Netflix build a data asset?

Netflix built a data asset by making customers give back feedback by rating their movies and were able to see how long a customer had a movie. Did lots of A/B testing on their website.

How has Netflix experienced wild swings in market perception and stock performance?

Netflix has experience wild swings in market performance because of Qwikster. When changing pricing Netflix has failed pretty brutally.

Why does the Netflix approach offers advantages over offerings from Apple or other consumer-electronics firm?

Netflix has it's own offering and is a cross platform software that does not need any hardware.

What was Netflix's size advantage in the the DVD by mail industry?

Netflix size advantage was in their long-tail selection of movies and their overnight automated distribution centers (didn't have to worry about STDB)

How does Netflix still curate a competitive advantage when it no longer has the longest tail?

Netflix still curates a competitive advantage by creating it's own content and having a recommender system that caters to its own content.

What is crowdsourcing and how has it helped Netflix?

Netflix used crowdsourcing to see if their algorithm for recommending can be improved. Although they did not use it. It helped them realize their could be improvement to their system.

What happened during the disastrous rollout and recall of the Qwikster?

Netflix wanted to change prices so it tried to segment it's company and canalize data.

What are the opportunities and challenges as Netflix seeks to expand its subscription streaming offerings to international markets?

The challenges Netflix faces in the international realms are competition that already exists and different licensing policies aboard.

What's the difference between physical scale and digital scale?

The difference between physical scale and digital scale is that digital scale is how widely available content is. Is their physical barrier such as devices and how much content you can provide. Where as physical scale is that scale of atoms.

How does the "First Sales Doctrine" differ from physical to digital?

The first sales doctrine allows people to resale physical products but when it comes to online products lines are blurry and licensing comes into play.

What is the long tail concept and how does it apply to Netflix?

The long tail concept is that idea of having a wide inventory/selection for consumers rather than just the popular ones. This gives businesses a competitive advantage because they are able to tap into older and niche markets which wouldn't satisfied(increasing brand). Netflix is able to utilize their long tail by recommending users Netflix's niche content.

What is the shift from atoms to bits?

The shift form atoms to bits is physical product's/store to digital storefronts and online content.

What is windowing, fixed versus marginal costs, and bandwidth caps?

Windowing- is when one firm has the rights to a specific program exclusively for a period of time. fixed costs- are costs that incurred no matter what happens marginal costs- the costs it takes to make one additional item. bandwidth caps- are what ISPs put on internet firms for much bandwidth they can take up.