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.

---

Definitions:

Pimps

Individuals who manage or exploit sex workers for financial gain, often using coercion or manipulation.

Madams

Women who manage or operate a brothel, overseeing the work and welfare of sex workers within the establishment.

Functionalist

Functionalist perspective is a sociological approach that emphasizes the way in which the parts of a society are structured to maintain its stability and functionality.

Social-psychological

Relating to how individual thoughts, feelings, and behaviors are influenced by social contexts and interactions.