As customers switch from renting DVDs to downloading or streaming movies from the Internet,Netflix will likely find it
A)harder to remain profitable as they face more competition with streaming movies than with mail order DVD rental.
B)harder to remain profitable as they face less competition with streaming movies than with mail order DVD rental.
C)easier to remain profitable as they face more competition with streaming movies than with mail order DVD rental.
D)easier to remain profitable as they face less competition with streaming movies than with mail order DVD rental.

Question

Quizplus · Accepted Answer

As customers switch to streaming movies, Netflix will face more competition from other streaming services, making it harder for them to maintain their profitability. The market for streaming services is more crowded than the market for DVD rental, so Netflix will have to compete with more players. Additionally, streaming services require significant investment in technology infrastructure, which will further impact Netflix's profitability.

As Customers Switch from Renting DVDs to Downloading or Streaming