An Internal Team at Netflix Developed a Prototype Set Top

question 49

Multiple Choice

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:

• 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.

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Definitions:

Management Policy

Guidelines and rules set by an organization's management to direct operations and decision-making in alignment with the company's objectives.

Credit Policy

A credit policy is a set of guidelines that a company follows to determine credit limits, payment terms, and how to manage delinquent accounts for its customers.

Terms of Sale

The conditions under which a sale is made primarily with respect to payment. Terms include a date on which payment is due and often specify a prompt payment discount that may be taken if payment is made within a specified time.

Lock Box Systems

A service provided by banks to companies for the quick collection of payments from customers by directing those payments to a special post office box.