Netflix has used the long tail to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from these ties with Netflix?
A) Discounted fees for marketing some of the less-popular titles from the studios
B) A cut of the subscription revenue from every disk sent out by Netflix
C) Greater bargaining power with movie rental firms such as Netflix, Blockbuster, and Wal-Mart
D) Lower costs related to screening movies in cinemas by releasing them straight on DVD
E) An equal share of revenue from the digital distribution model through online streaming

Question

Quizplus · Accepted Answer

Film studios benefit from ties with Netflix by receiving a cut of the subscription revenue from every disk sent out, providing them with a steady income stream from their less-popular titles.

Netflix Has Used the Long Tail to Its Advantage, Crafting