Netflix keeps track of everything you watch to better recommend new titles to you. While this obviously encourages you to use Netflix and keep the service, how does it help Netflix's bottom line?
A) It lowers the average total cost.
B) It constrains contestability.
C) It discourages antitrust action.
D) It aids in Netflix's standards war.

Question

Quizplus · Accepted Answer

By keeping track of everything a user watches, Netflix can better recommend new titles, which leads to increased user satisfaction and engagement. This, in turn, can lead to lower contestability, meaning that users are less likely to leave Netflix for a competitor. This helps Netflix's bottom line by providing a more stable user base and ensuring that users continue to pay for their subscription.

Netflix Keeps Track of Everything You Watch to Better Recommend