NFLX and AMZN

Question 1

Who has the #1 retail and cloud platform?

Answer 1

AMZN

Question 2

What defines Bexos as a CEO

Answer 2

he’s a long term guy (AWS cloud Example)

Question 3

how did AMZN become a platform?

Answer 3

added AMZN marketplace

Question 4

What happened when NFLX became public

Answer 4

disclosed how profitable it was and competition entered (Block buster and Walmart)

Question 5

Why did competition underestimate NFLX

Answer 5

is was an internet pureplay without a store front and the customer base bas small in comparison to Blockbusterr

Question 6

What was the BI system that Netflix used

Answer 6

the movie recommendations engine

Question 7

what did DVD by mail do for NFLX

Answer 7

validated the idea of no late fees and no mailing expenses

Question 8

What did customers use netflix.com for when the it was only dvd by mail

Answer 8

rate videos, specify movie preferences, get recommendations, see dvd details, write reviews

Question 9

Advertising builds____ and customer experience builds the ____

Answer 9

awarenes; brand

Question 10

What is the longtail

Answer 10

it is the movies that are not as popular and cannot be carried by traditional store but netflix can get em for cheap and drive customers toward em

Question 11

What are some of the downfalls of traditional stores over online stores

Answer 11

limited reach, changing neighborhoods, store inventory limited, cost to operate higher

Question 12

How was NFLX’s long tail and studio alliance a win-win

Answer 12

studios earn a % of subscription rev with no additional ad spending and NFLX gets movies at a low cost

Question 13

What is CENEMATCH and how does it turn data into profits

Answer 13

the proprietary recommendation engine, usescustoemr ratings to profile that custoemr and recommend more obscure titles that other ppl in that profile fit, minimizes churn rate, creates switching costs, the power of cinematch is the data not the algorithm. Called collaborative filtering

Question 14

How does netflix minimize MKTG costs

Answer 14

it keeps customers happy and gets referrals which are better than ads

Question 15

How did NFLX have an edge on Blockbuster

Answer 15

they had a larger user base and benefitted form economies of scale, pureplayu > straddle

Question 16

What killed blockbuster

Answer 16

they had to get rid f late fees which were the main $ maker for them

Question 17

How did NFLX screw up the Quickster deal

Answer 17

it doubled prices on customers, they didnt have all of the social media handles locked up, they were going to split their data asset in half, everyone agreed htey had to move to streaming bu they did it the wrong way

Question 18

What are the perks of original content

Answer 18

switching costs, exclusive, eliminates licensing costs

Question 19

What is the Net Neutrality debate about

Answer 19

ISPs want to vary service based on bandwidth and service, Internet firms want to maintain the openess of the internet