Question 1

Netflix's initial revenue model was based on a flat-rate monthly subscription fee rather than a per-disc rental fee.

Accepted Answer

A) True 
 B)False

Question 2

Fixed costs vary according to production volume.

Accepted Answer

A) True 
 B)False

Question 3

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)   firms such as Apple and Amazon offered third-party set top boxes to stream Netflix movies.
C)   of the commoditization of Blu-ray players, which rendered set top boxes obsolete.
D)   of the brutally competitive nature of the consumer electronics business.
E)   the firm was apprehensive about investing in the hardware business when it was losing revenue during the economic recession.

Question 4

Netflix attempted to rebrand its DVD-by-mail service under the name _____.

Accepted Answer

A)   Qwikster
B)   Cinematch
C)   Starz
D)   PurePlay
E)   Epix

Question 5

Even though Netflix is now mainly focused on digital distribution, it continues to offer the DVD-by-mail service in its base-price product.

Accepted Answer

A) True 
 B)False

Question 6

The idea that many media products are digital files of ones and zeros sold in physical containers, is known as:

Accepted Answer

A)   information integration.
B)   metaphysical assimilation.
C)   data congruence.
D)   atoms to bits.
E)   technology restructuring.

Question 7

Which of the following represents an advantage enjoyed by Netflix over traditional video stores?

Accepted Answer

A)   Lower technology overhead
B)   Lower shipping expenses
C)   Larger entertainment selection
D)   Higher energy costs
E)   Higher churn rates

Question 8

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 9

Walmart owns the video streaming outfit called _____.

Accepted Answer

A)   Hulu
B)   Vudu
C)   Voddler
D)   Spotify
E)   Grooveshark

Question 10

Within the DVD-by-mail segment, Netflix is now bigger than both Wal-Mart and Blockbuster.

Accepted Answer

A) True 
 B)False

Question 11

Collaborative filtering is a classification of software that:

Accepted Answer

A)   is used to gather user ratings and calculate a gross average user rating for each movie.
B)   provides Netflix users with parental controls and other options while streaming movies online.
C)   selectively sorts movies based on their censor ratings and delivers age-appropriate search results.
D)   monitors trends among customers to personalize an individual customer's experience.
E)   collates user ratings for a movie and creates a ranked list of movies most liked by users.

Question 12

Explain the long tail phenomenon at Netflix.

Accepted Answer

The long tail is a phenomenon whereby fi...

Question 13

What solution has Netflix come up with to address the need to deliver content to customers' televisions?

Accepted Answer

A)   Netflix has entered into a revenue sharing agreement with Apple to produce customized set top boxes.
B)   Netflix access is being baked into new-age Blu-ray players that are fast on the track to commoditization.
C)   Netflix has invested in a hardware division to build and market its own set top boxes.
D)   Netflix has acquired Vudu, a firm that specializes in the online streaming business.
E)   Netflix provides a software platform to firms seeking to build Netflix access into their devices.

Question 14

The true exploitable resource created and leveraged through collaborative filtering technology is the data asset.

Accepted Answer

A) True 
 B)False

Question 15

Netflix never provided a good customer experience to its customers.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of Netflix DVD-by-mail?

Accepted Answer

A)   Its content acquisition cost is fixed.
B)   Its competitors are numerous with different models.
C)   It is more appealing for new entrants.
D)   It allows unlimited monthly subscription to all content.
E)   It provides opportunities for new content and revenue models.

Question 17

Durable brands are built through customer experience.

Accepted Answer

A) True 
 B)False

Question 18

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call is known as _____.

Accepted Answer

The answer of The act of taking a job traditionally...

Question 19

Walmart decided to pull the plug on their DVD-by-mail effort because they:

Accepted Answer

A)   didn't have an early moving lead in that industry.
B)   didn't have sufficient cash to compete with rivals.
C)   had insufficient selection.
D)   had only a single distribution center.
E)   were unable to handle their large customer base.

Question 20

The practice of windowing involves:

Accepted Answer

A)   making content available to a distribution channel for a specified time period under a different revenue model.
B)   scheduling movies to be streamed online at primetime periods to pull in more revenue from advertising.
C)   relaying advertisements for limited time periods during online movie steaming, as opposed to frequent ad breaks.
D)   delaying the sending of DVDs to customers until 28 days after titles go on sale.
E)   streaming movies to customers' computers beforehand and then relaying them on television.

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

Even though Netflix is now mainly focused on digital distribution, it continues to offer the DVD-by-mail service in its base-price product.

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

Netflix's initial revenue model was based on a flat-rate monthly subscription fee rather than a per-disc rental fee.

Correct AnswerverifiedShow Answer

Netflix attempted to rebrand its DVD-by-mail service under the name _____.

Correct AnswerverifiedShow Answer

Fixed costs vary according to production volume.

Correct AnswerverifiedShow Answer

The practice of windowing involves:

Correct AnswerverifiedShow Answer

Which of the following represents an advantage enjoyed by Netflix over traditional video stores?

Correct AnswerverifiedShow Answer

Which of the following is true of Netflix DVD-by-mail?

Correct AnswerverifiedShow Answer

Netflix never provided a good customer experience to its customers.

Correct AnswerverifiedShow Answer

The idea that many media products are digital files of ones and zeros sold in physical containers, is known as:

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

Explain the long tail phenomenon at Netflix.

Correct AnswerverifiedThe long tail is a phenomenon whereby fi...View AnswerShow Answer

Within the DVD-by-mail segment, Netflix is now bigger than both Wal-Mart and Blockbuster.

Correct AnswerverifiedShow Answer

Walmart owns the video streaming outfit called _____.

Correct AnswerverifiedShow Answer

The act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined generally large group of people in the form of an open call is known as _____.

Correct AnswerverifiedShow Answer

Walmart decided to pull the plug on their DVD-by-mail effort because they:

Correct AnswerverifiedShow Answer

The true exploitable resource created and leveraged through collaborative filtering technology is the data asset.

Correct AnswerverifiedShow Answer

What solution has Netflix come up with to address the need to deliver content to customers' televisions?

Correct AnswerverifiedShow Answer

Durable brands are built through customer experience.

Correct AnswerverifiedShow Answer

Collaborative filtering is a classification of software that:

Correct AnswerverifiedShow Answer

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The long tail is a phenomenon whereby fi...
View Answer

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