Question: Why did Netflix split its business into two separately billed services, and why did it attempt to split the business in two? What did the

  1. Why did Netflix split its business into two separately billed services, and why did it attempt to split the business in two? What did the firm do wrong?
  2. Do you think Netflix is right to try to hasten the transition to streaming? Why or why not? What are the risks in waiting? What are the risks in moving too quickly?
  3. Could a new competitor match Netflixs recommendation software? If it did, would this create a threat to Netflix? Why or why not?
  4. Investigate the firm Red Box. Do you think they are a legitimate threat to Netflix? Why or why not?

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