How Is Scale Important to Netflix Streaming Business

question 8

Multiple Choice

How is scale important to Netflix streaming business?

• A) A larger firm with more customers can spend more on content licenses
• B) The firm can build larger data centers as it competes with the likes of Amazon Prime
• C) Netflix can continue to expand its network of nationwide distribution centers to overseas locations
• D) It will allow the firm to improve the marginal cost of its titles, which will also improve profitability
• E) All of the above

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Definitions:

Constant Flow

A steady, uniform rate of movement or supply.

Meander Scars

Erosional features left in the landscape by the remnants of ancient river meanders.

Oxbow Lakes

Crescent-shaped lakes formed when a river meander is cut off from the main stream.

Cutbank

The steep or vertical bank on the outside bend of a river or stream, eroded by flowing water.