Netflix: Sustaining Leadership in an Epic Shift from Atoms to Bits

These flashcards cover key vocabulary and concepts related to Netflix's business model, its evolution from DVD rental to streaming service, and the broader implications of digital content distribution.

Netflix

A streaming service that revolutionized the entertainment industry, initially known for DVD-by-mail services before transitioning to streaming.

Atoms to Bits

The transition from physical products (like DVDs) to digital products (like streaming content).

Coopetition

A situation where firms cooperate and compete simultaneously.

First Sale Doctrine

A legal principle allowing the resale of physical copies of copyrighted products, but inapplicable to digital products.

Marginal Costs

Costs associated with producing one additional unit of a product, which for digital content can be zero.

Windowing

The practice of making content available to specific distribution channels for a set time period, often under different revenue models.

Long Tail

A business model that allows firms to profit by offering a vast selection of products, even if individual items sell in low volumes.

Transfer Pricing

The pricing of goods and services sold between related business entities, often impacting accounting and legal considerations.

Disintermediation

Removing intermediaries from a supply chain, allowing direct access to customers and consumer data.

Binge-watching

The practice of watching multiple episodes of a television series in one sitting, facilitated by streaming services.

Exclusive Content

Original or unique media offerings that are not available on other platforms, giving firms like Netflix a competitive advantage.

Decision Fatigue

A phenomenon where consumers become overwhelmed by too many choices, leading to avoidance of selection decisions.

Streaming Service Churn

The rate at which subscribers leave a streaming service, with Netflix notably maintaining the lowest churn rate among competitors.

A/B Test

An experiment comparing two alternatives (A and B) to determine which performs better, commonly used in data-driven decision-making.

AI Personalization

The use of artificial intelligence to tailor content recommendations to individual users based on their viewing habits.

Long-Enough Tail

The idea of offering a sufficient variety of content to remain appealing to diverse audiences, despite not being the absolute longest in selection.