By Going Public, Netflix Encountered Stiff Competition from Firms Such

question 20

Multiple Choice

By going public, Netflix encountered stiff competition from firms such as 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.

---

Definitions:

Horizon Moon

The optical illusion observed when the moon appears larger near the horizon than when it is higher in the sky.

Shape Constancy

The perceptual skill that allows individuals to recognize the form of an object even when viewed from different angles.

Retinal Image

The visual image that is formed on the retina as light from the environment enters the eye, essential for vision.

Depth Perception

The visual ability to perceive the world in three dimensions (3D) and to judge the distance of objects.