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.

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

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