Final answer:
Netflix's streaming service benefits from scale advantages such as global reach and accessibility, as well as advancements in internet technology like fiber optics and 4G/5G networks. These advances have allowed it to gain a vast subscriber base, contributing to its market power and content diversity.
Step-by-step explanation:
In the context of Netflix, the scale advantages associated with streaming include global reach and accessibility. As the internet's bandwidth expanded with fiber optic networks and cellular networks like 4G and 5G, it became possible to stream media to devices such as smartphones and tablets, allowing for video streaming to potentially replace traditional broadcast television.
The global reach of streaming platforms means that they can amass large numbers of subscribers, which in turn increases their purchasing power and negotiating leverage with content creators, leading to potentially lower costs per subscriber and a more diverse content library.
Moreover, the growth of streaming has coincided with changing consumer preferences, as streaming video seems to have overtaken the preference for physical DVD disks. Netflix's substantial subscriber growth indicates the broad appeal and advantages of streaming services, including convenience and immediate access to a wide range of content.