info Chapter 4 quiz – Flashcards
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The shift from atoms to bits does not stand to impact content creators, middlemen, and retailers.
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False
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What solution has Netflix come up with to address the need to deliver content to customers' televisions?
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Netflix provides tools to firms seeking to build Netflix access into their devices.
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Brands are built through _____.
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customer experience
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Netflix competitors in streaming are small and mostly unprofitable.
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False
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Netflix gets to retain the entire subscription revenue for every disk sent out to a customer.
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False
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Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that Internet businesses are more _____.
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scalable
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Which of the following is true of Netflix streaming?
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Content providers enjoy greater bargaining power as the sole source for unique titles unavailable from any other source.
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User ratings act as _____ for Netflix's customers.
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switching costs
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When firms enjoy economies of scale, they:
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leverage the cost of an investment across increasing units of production.
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How does Cinematch offer Netflix additional operational advantages for the DVD-by-mail business?
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Cinematch is linked to warehouses and recommends movies that are likely to be in stock.
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Title availability is complicated by a distribution practice known as _____.
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windowing
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Costs that do not vary according to production volume are called _____.
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fixed costs
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How is the collaborative filtering software used by Netflix advantageous to the firm?
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The software has created an enormous data advantage that is valuable, results yielding, and difficult for newcomers to match.
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How does the Cinematch recommendation system work?
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Cinematch develops a map of user ratings and steers users toward titles preferred by people with similar tastes.
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By shifting to a streaming model, Netflix stands to eliminate shipping and handling costs.
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True
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_____ refers to removing an organization from a firm's distribution channel.
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Disintermediation
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Which of the following statements is true about retailing?
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Nearly limitless selection allows Internet retailers to leverage the long tail.
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The shift from atoms to bits is realigning nearly every media industry.
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True
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The Netflix work culture is in many ways similar to its peers.
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False
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One of the benefits of disintermediation in the video industry is that:
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studios get to retain all the money generated through windows where they control distribution.
