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Apple launched its Apple TV HD in March 2007. The device is essentially a set-top box that streams content from over-the-top (OTT) platform services onto the TV screen. The device was praised for its powerful hardware and stable software at the time. However, it was not able to gain momentum in sales due to the limited availability of OTT platforms.

Fast-forward to 2019, Apple has been selling Apple TV 4K, an upgraded version of the already available Apple TV HD. The market is flooded with OTT platforms, and a major share of it is being held by Netflix (more than 50%). Looking to capture a major chunk of this OTT market, Apple launched its OTT service by the name of Apple TV+ on 1 November 2019. It also started offering a free one-year subscription of Apple TV+ with the purchase of Apple TV 4K and HD. Soon, the sales of Apple TV started picking pace.

If now, Netflix decides to increase the price of its monthly subscription, what would be the impact (increment or decrement) on the demand for Apple TV+ (Recall Apple TV+ is Apple’s OTT service)? (5 Marks)

1. The demand for Apple TV+ will decrease with an increase in the price of Netflix subscription.
2. The demand for Apple TV+ will increase with an increase in the price of Netflix subscription.

Q2. In the scenario mentioned above, determine the impact (increment or decrement) on the demand for Apple TV 4K (Recall Apple TV 4K is Apple’s set-top box). (5 Marks)

1. The demand for Apple TV 4K will decrease with an increase in the price of Netflix subscription.
2. The demand for Apple TV 4K will increase with an increase in the price of Netflix subscription.

Q3. Determine the nature of time series forecasting. (5 Marks)

1. Qualitative
2. Quantitative

Q4. Determine the type of inventory that should be used for a product with a highly predictable demand. (5 Marks)

1. Make-to-stock
2. Make-to-order

Q5. Determine which of the following variables should not be considered while designing a distribution network.