Licensing costs and legal requirements are a barrier to entry for Netflix in global markets.

Question

BlackTom AI · Accepted Answer

Question restatement: The claim is that licensing costs and legal requirements act as a barrier to entry for Netflix in global markets.

Option 1: True. This option posits that entering new markets is impeded by the need to secure licenses for content, approvals from regulators, and compliance with local laws. In practice, streaming platforms like Netflix must negotiate licensing agreements with rights holders, navigate varying regional content rules, censorship regimes, data protection laws, and consumer protection regulations. These factors can raise upfront costs, extend time-to-market, and create ongoing compliance burdens, which collectively function as barriers to entry in many jurisdictions.

Option 2: False. This would assert that licensing costs and legal requirements do not hinder entry into new markets. However, given the global media landscape, licensing negotiations are fundamental to offering licensed content, and regulatory hurdles are common across countries. This makes the notion that such costs and requirements pose no barrier inconsistent with real-world market entry challenges for streaming services.

To evaluate the statement, consider how content rights, regional blacklist or age-rating rules, local taxation, and varying telecommunications or consumer privacy regulations can complicate market launches. Additionally, the time and capital needed to secure licenses and ensure compliance illustrate why these factors are commonly described as entry barriers.

In summary, licensing costs and legal requirements create meaningful hurdles when expanding to new international markets, supporting the claim that they are barriers to entry for Netflix in global markets.

KSB-113-006.2025F [25 Fall] Final Exam- Requires Respondus LockDown Browser

Licensing costs and legal requirements are a barrier to entry for Netflix in global markets.

View Explanation

Log in for full answers

Similar Questions

It is difficult to start up a major league sports team because existing professional teams have contracts with the best players and long-term leases on stadiums. Which barrier to entry does this illustrate?

Competitive pressures associated with the threat of entry are greater in all of the following situations except when

Launch Cars, a car manufacturing company, has patented its breakthrough technology that reduces pollutant emissions by half. The company is now an active supporter of anti-pollution laws that are likely to diminish the profitability of many other auto makers. Launch Cars is attempting to ________.

If barriers to entry go up, threat of entry goes down.

Question at position 21 Licensing costs and legal requirements are a barrier to entry for Netflix in global markets.TrueFalse

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler