| What are Netflix’s reportable business segments? | Netflix has three reportable business segments: Domestic streaming, International streaming, and Domestic DVD . | - Netflix has three reportable segments. (entailed) |
| | - Netflix's reportable segments are Domestic Streaming, International Streaming, and Domestic DVD. (entailed) |
| What competitive threat does Netflix face that is unique to international markets? | Netflix faces several competitive threats unique to international markets, including: | - Netflix faces censorship requirements in international markets. (entailed) |
| | - Netflix faces differing payment processing systems in international markets. (neutral) |
| 1. Censorship Requirements: Netflix may need to remove or edit popular content to comply with local censorship laws, which can lead to consumer disappointment or dissatisfaction with the service . | - Netflix faces local piracy in international markets. (entailed) |
| | - Netflix needs to adapt content for specific cultural differences in international markets. (entailed) |
| 2. Piracy: The threat of piracy is particularly significant in international markets where laws and consumer attitudes towards piracy may be more lenient, making it difficult for Netflix to compete against the availability of free pirated content . | - Netflix needs to adapt content for specific language differences in international markets. (entailed) |
| 3. Regulatory and Legal Challenges: Netflix must navigate different and often more stringent user protection, data protection, privacy, and other laws in various countries. This includes compliance with local laws and regulations, which can be complex and costly . | |
| 4. Network Neutrality: In some international markets, network neutrality rules may be nascent or non-existent, allowing local network operators to engage in discriminatory or anti-competitive practices that could impede Netflix's growth and increase operational costs . | |
| 5. Cultural and Language Adaptation: Netflix needs to adapt its content and user interfaces to specific cultural and language differences, which can be challenging and resource-intensive . | |
| 6. Economic and Political Instability: Operating in international markets exposes Netflix to risks such as political or social unrest and economic instability, which can adversely affect its business operations . | |
| These factors collectively create a unique competitive environment for Netflix in international markets. | |
| What are Netflix’s goals for its Domestic Streaming segment contribution margin by 2020? | Netflix's goal for its Domestic Streaming segment contribution margin by 2020 is 40% . | - Netflix’s target for the Domestic Streaming segment contribution margin is 40% by 2020. (entailed) |