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

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BlackTom AI · Accepted Answer

The question asks whether licensing costs and legal requirements are a barrier to entry for Netflix in global markets, presenting two choices: True or False. 
Option 1: True. This statement argues that licensing costs and regulatory rules hinder Netflix from entering global markets. Here, we can discuss how streaming services must negotiate a mosaic of licensing deals for film and TV content with rights holders, which vary by country and can be expensive and complex. Additionally, regulatory requirements—such as local data privacy laws, content censorship rules, consumer protection standards, and taxation—as well as obligations like content quotas, local employment laws, and potential local content mandates, collectively raise barriers to entry. These factors can slow expansion, raise upfront costs, and require ongoing compliance adjustments.
Option 2: False. This claim would assert that licensing costs and legal requirements do not constitute barriers to entry in global markets. A counterpoint is that, while Netflix often leverages global licensing frameworks and negotiates global deals, the regional fragmentation of licensing and the divergent regulatory landscapes mean costs and compliance obligations persist and can be substantial. Some markets may have more streamlined processes or favorable regulatory environments, but portraying licensing and legal hurdles as nonexistent or universally negligible would ignore real-world friction, including content-vendor negotiations, localization requirements, and ongoing regulatory compliance.
In evaluating the nuances, note that factors other than licensing costs and legal requirements—such as competitive intensity, consumer preferences, incumbents' market position, and distribution infrastructure—also influence entry feasibility. However, the core idea behind option True emphasizes that licensing and regulatory considerations commonly impede or complicate entry; option False would understate or mischaracterize those barriers by suggesting they are absent or irrelevant in global expansion.

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

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