When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:
A) Vertical integration.
B) Sorting.
C) Bulk-breaking.
D) Assorting.
E) Licensing.

Question

Quizplus · Accepted Answer

This is an example of sorting, as the intermediary is categorizing the programming into different categories based on their content. Vertical integration involves a company owning or controlling multiple stages of production or distribution, bulk-breaking refers to breaking down large quantities into smaller units for sale, assorting involves selecting and gathering a variety of products for sale, and licensing involves granting permission to use intellectual property.

When an Online Intermediary Like Hulu Scans Thousands of Hours