Question
Marketing appears to be a crucial part of Netflixs operating strategy and their cost structure. Without a major commitment to marketing it appears that Netflix
Marketing appears to be a crucial part of Netflixs operating strategy and their cost structure. Without a major commitment to marketing it appears that Netflix could not achieve its goal of increasing revenue from subscriptions. If they could, we can assume that Netflix would cut back on marketing and devote those funds to other purposes. Explain how the relationship between revenue and marketing expense creates a cost structure that results in a barrier to entry that would discourage or prevent existing and potential competitors from attempting to compete with Netflix for market share.
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