Saturday, October 24, 2015

Chapter 9- Tacit Collusion: Cooperation to Reduce Competition


Collusion results when two or more companies get together to provide cooperation within their industry to reduce the competitive of firms not part of this collusion. Netflix has small areas which could be taken as collusion as to increase their competitiveness within industry. This can be demonstrated by a few of their agreements with other media providers. The one area is in content, where Netflix has made deals with Disney and some of Disney subsidiaries. The original programming Netflix has embarked on is in with full cooperation with Marvel studios, which is owned by Disney.  Netflix has also made deals with cable companies that will host or mirror their video library enabling customers to have greater access to 4k steaming technology. The first one in North America is a deal with Rogers’s media to provide 4k streaming to Rogers’ customers. This is done even though Rogers has a streaming service of their own.  


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