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Homework answers / question archive / QUESTION 1) Netflix has been disruptive to more than one market
QUESTION 1) Netflix has been disruptive to more than one market. Select the market in which you think it has been least disruptive. Do outside research and justify your choice.
a. Video Rental business
b. Home internet service
c. Broadcast and cable TV service
d. Original video series production
QUESTION 2)Compared to Netflix, Blockbuster had very little data on their customers, or understanding of their preferences or behaviors. Which Netflix advantage had the most impact on Blockbuster's business model becoming disrupted? Why?
a. Netflix knew if the movie a customer rented was their first choice
b. Netflix's recommendation engine based on rental history, likes, and dislikes Netflix's subscription model of never a late fee
QUESTION 3. With the rise of the Video on Demand market, which threat is likely to have the least impact on Netflix's streaming service business? Why?
a. Threat of a competitor entering the market, which may also use the same Cloud-based services that Netflix uses.
b. Disintermediation of Netflix by the studios
c. Loss of Net Neutrality protection regarding delivery of streaming content
d. Unable to use the First Sale doctrine for physical DVDs, when streaming video
QUESTION 1. Netflix has been disruptive to more than one market. Select the market in which you think it has been least disruptive. b. Home internet service .
Far from being disruptive, Netflix has contributed to the improvement of home internet services, which are essential to accessing the platform.
QUESTION 2. Compared to Netflix, Blockbuster had very little data on its customers or understanding of their preferences or behaviors. Which Netflix advantage had the most impact on Blockbuster's business model becoming disrupted? b. Netflix's recommendation engine based on rental history likes, and dislikes .
Blockbuster had no way to track a customer's likes and dislikes, because keeping track of private information is illegal. Netflix uses a model which automatically recommends shows and movies without keeping track of private information.
QUESTION 3. With the rise of the Video on Demand market, which threat is likely to have the least impact on Netflix's streaming service business? d. Unable to use the First Sale doctrine for physical DVDs, when streaming video .
The First Sale doctrine does not apply to streaming businesses, therefore it has zero impact on Netflix's business model.
