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Netflix has used the long tail in the DVD-by-mail business to its advantage, crafting a business model that creates close ties with film studios. What do film studios stand to gain from taking advantage of the Netflix model targeted at increasing the firm's long-tail offerings?Discounted fees for marketing some of the less-popular titles from the studiosA cut of the subscription revenue from every disk sent out by NetflixGreater bargaining power with movie rental firms such as Netflix, Blockbuster, and Wal-MartLower costs related to screening movies in cinemas by releasing them straight on DVDAn equal share of revenue from the digital distribution model through online streaming
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