Netflix has hit a bump in the road on its quest to reach 60 million to 90 million subscribers in the United States and, by the end of 2016, become fully global. Netflix faces fierce competition from streaming rivals like Amazon, HBO, and Hulu and also competes against cable, satellite, YouTube, and DVDs.

Explain why more firms have entered the streamingvideo market and how the economic profit of firms in the market will likely change. What will economic profit be in the long run? Explain your answer.