By going public, Netflix encountered competition from the large, established firms Wal-Mart and Blockbuster. What aspect of Netflix going public lured these firms into the market?
A) By going public, Netflix was required to disclose its financial position.
B) By going public, Netflix was forced to reveal the Cinematch algorithm used to classify user ratings.
C) Netflix's model of flat-rate monthly subscriptions was found to be more profitable than a per-disc rental fee model.
D) Netflix's plan to enter the online movie streaming market alerted rivals to the possibility of losing their market share.
E) The migration of Netflix services to cover the Blu-ray disc market opened up opportunities for rivals.

Question

Quizplus · Accepted Answer

Netflix going public required it to disclose its financial position, which provided competitors with insights into its business model and profitability, potentially attracting them to enter the market.

By Going Public, Netflix Encountered Competition from the Large, Established