February 3, 2020
Netflix adds subscribers.
Questions
- What does Netflix blame for its sluggish increase in new members in the North American market?
- Netflix competes in a competitive market. Explain why the demand curve that Netflix faces is downward sloping and not horizontal.
- What happens to the demand curve that Netflix faces as new firms enter the market? What happens to the demand curve that Netflix faces as it introduces more new content and buys more existing programming?
- Draw a graph to illustrate your answer to #3.
- Is the market in which Netflix competes an efficient market?