Netflix incurs a huge fixed cost to obtain streaming rights to movies and television programs.However,it is able to spread this cost over a large number of subscribers that results in a cost-savings phenomenon referred to as

Question

Quizplus · Accepted Answer

The phenomenon referred to in the question is economies of scale, where the fixed cost of obtaining streaming rights is distributed over a large number of subscribers resulting in per-unit cost reduction.

Netflix Incurs a Huge Fixed Cost to Obtain Streaming Rights