By Going Public, Netflix Encountered Competition from the Large, Established

question 11

Multiple Choice

By going public, Netflix encountered competition from the large, established firms Wal-Mart and Blockbuster. What aspect of Netflix going public lured these firms into the market?

• A) By going public, Netflix was required to disclose its financial position.
• B) By going public, Netflix was forced to reveal the Cinematch algorithm used to classify user ratings.
• C) Netflix's model of flat-rate monthly subscriptions was found to be more profitable than a per-disc rental fee model.
• D) Netflix's plan to enter the online movie streaming market alerted rivals to the possibility of losing their market share.
• E) The migration of Netflix services to cover the Blu-ray disc market opened up opportunities for rivals.

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Definitions:

Antisocially

Acting in a manner that is contrary to the laws or norms of society, often harming or lacking consideration for the well-being of others.

Immorally

In a way that is not conforming to accepted standards of morality, often involving actions that are ethically wrong.

Cathartic Hypothesis

The idea that expressing or venting emotions, particularly negative emotions, can lead to psychological relief.

Frustration-Aggression Hypothesis

A theory suggesting that aggression is often a result of frustration, which arises from blocked goals or desires.