Free Practice Question
CR · Critical Reasoning
605-655
Conclusion
Michael: A new type of digital download has just been introduced. It can be accessed for only a quarter as many times as the previous version but is priced at half the cost. Thus, streaming services would find it much more cost-effective to acquire and offer movies in this new format compared to the old one. Sarah: However, the digital download itself only represents 10 percent of the total cost a streaming service incurs to obtain a movie; the majority of the cost is made up of licensing fees paid to the production company. Therefore, the overall cost that streaming services pay per movie would reduce by significantly less than 10 percent, and they would need to pay licensing fees for additional downloads. Sarah’s response is structured to lead to which one of the following conclusions?
Answer Choices
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The licensing fees paid to production companies for movies available for streaming are excessively high.
B
Streaming services should always prioritize the highest-quality digital formats available, as longevity is more crucial than cost.
C
The largest portion of the fee a customer pays to stream a movie from a service goes toward the licensing fees the service paid for that movie.
D
The savings for streaming services that acquire movies in the cheaper digital format instead of the more durable ones will be minimal or nonexistent.
E
If the cost a streaming service pays to acquire a movie in digital format does not decrease, the streaming fee charged to customers will not decrease.
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M
MaryamMar 19, 2025
thanks!
Details
Difficulty
605-655
Type
CR