In exchange for a percentage of the subscription revenue for every disk sent out by Netflix, movie studios offer Netflix:
A) online streaming rights free of cost.
B) higher fees for marketing less-popular movies.
C) their DVD catalog at a wholesale price.
D) distribution rights to certain movies free of cost.
E) strong bargaining power in negotiations for digital distribution rights.

Question

Quizplus · Accepted Answer

Movie studios offer Netflix their DVD catalog at a wholesale price, meaning that Netflix can purchase the DVDs at a lower cost and then rent them out, earning a profit on each rental. This benefits the studios by increasing sales and distribution of their movies, while Netflix gains a larger selection of DVDs to offer to its customers.

In Exchange for a Percentage of the Subscription Revenue for Every