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.