This year Netflix and Hulu, streaming entertainment providers, have launched new

Question

This year Netflix and Hulu, streaming entertainment providers, have launched new or continued series on their own networks. In the case of Netflix, they have always provided House of Cards, but since added series from Fuller House (the extension of the 90s show Full House) and Daredevil. Hulu has expanded to offer shows like 11.22.63 (Stephen King based adaptation) and picked up shows like The Mindy Project. Given what was mentioned previously of the expansion of access to internet connection, do you think current cable providers should be concerned? How does this impact the once heavily monopolized market, and does this shift the structure more to the left side of the spectrum (from Monopoly to Monopolistic Competitive?)

Explanation / Answer

Given what was mentioned previously of the expansion of access to internet connection, current cable providers should definitely be concerned. This is because in today's market economy, reactions must be there for every action. Such reactions by competitors in the market would impact the once heavily monopolized market, and shift the structure more to the left side of the spectrum i.e, from Monopoly to Monopolistic Competitive form. The competition would increase between different firms and each firm would differentiate its product by improving it or diversifying it for attracting more customers. Since there is freedom to enter or leave the market, as there are no major barriers to entry or exit, the market would take monopolistic competitive form from monopoly.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.