An Internal Team at Netflix Developed a Prototype Set Top

question 79

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) all major US cable firms built Netflix streaming into their set-top boxes.
• C) the Blu-ray standard requires streaming features, as well.
• D) of the brutally competitive nature of the consumer electronics business.
• E) the entire software team was recruited by TiVo after LinkedIn made it easy to target and poach rival talent.

---

Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often on a financial or commodity market.

Hedge Inventory

Hedge inventory involves the use of financial instruments or market strategies to offset potential losses or gains in the inventory's value due to price fluctuations.

Selling Price

The amount of money a buyer pays to purchase a product or service.

Call Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific timeframe.