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:

Industrial Workers of the World

An international labor union founded in 1905, known for its belief in the unity of all workers and the need for industry-wide unions.

Unskilled Workers

Employees who perform tasks that require little to no special training or education, often involving simple, manual labor.

Labor Disputes

Conflicts between employees and employers regarding working conditions, wages, and other employment terms, which can lead to negotiations, strikes, or other collective actions.

Union Membership

The status of being a member of a labor union, which represents workers in negotiations with employers over wages, working conditions, and other employment matters.