Why is the “First-Sale Doctrine,” including understanding when it does and doesn’t apply, relevant to Netflix?
A) It means content acquisition costs for DVDs are more predictable than streaming costs.
B) It means that content acquisition costs for streaming are more predictable than DVDs.
C) In cases of streaming media, it facilitates a shift of bargaining power to content suppliers.
D) In cases of streaming media, it facilitates a shift of bargaining power to firms paying to license content from suppliers.
E) None of the above.
F) a & d
G) b & c
H) a & c
I) b & d

Question

Why is the “First-Sale Doctrine,” including understanding when it does and doesn’t apply, relevant to Netflix?
A)	It means content acquisition costs for DVDs are more predictable than streaming costs.
B)	It means that content acquisition costs for streaming are more predictable than DVDs.
C)	In cases of streaming media, it facilitates a shift of bargaining power to content suppliers.
D)	In cases of streaming media, it facilitates a shift of bargaining power to firms paying to license content from suppliers.
E)	None of the above.
F)	a & d
G)	b & c
H)	a & c
I)	b & d

Quizplus · Accepted Answer

The First-Sale Doctrine allows Netflix to purchase DVDs and rent them out without additional licensing fees, making costs predictable. However, for streaming, Netflix must negotiate licenses, giving content suppliers more bargaining power.

Why Is the “First-Sale Doctrine,” Including Understanding When It Does