Netflix Pestel analysis, Reed Hastings, DVD rental market, Marc Randolph, Amazon Prime, OCS, Canal plus
Netflix is an American entertainment company that has grown into a major Internet TV provider. As of 2017, the company has a large customer base of over 100 million subscribers in over 190 countries, with over 51 million subscribers located in the United States.
The company was founded by Reed Hastings and Marc Randolph in 1997. The corporate headquarters are located in Los Gatos, California. In 2016, Netflix bought around 126 original movies and added them to its catalogue, which is more than any other cable provider ever achieved in the world. In 2016, Netflix's business revenue was approximately 2.7 billion dollars.
[...] Due to this, Internet prices could rise, threatening the business model of Netflix's Internet streaming service. The controversial EU decisions on streaming services also impact the activity of players such as Netflix, which must comply with a number of rules similar to traditional television distributors. This means that Netflix will have to adhere to the rule that 30% of the platform's content must be European. Additionally, the company will be taxed the same 26% levy as traditional media, forcing Netflix to potentially pass the costs on to customers. [...]
[...] This ever- increasing trend shows a demand for content on the move in order to accommodate the busy lives of Netflix customers. The tendency of customers to consider cable TV options (Canal OCS, etc.) as expensive and less attractive, given the variety of online viewing options demonstrates the influence of services like Netflix. D. Technological Technology is rapidly disrupting various industries. The transportation industry is a good example illustrating this point. Over the past five years, the industry has transformed rapidly, with established players not being agile enough to cope with the changes. [...]
[...] Netflix Pestel Analysis I. Introduction A. Netflix Netflix is an American entertainment company that has grown into a major Internet TV provider. As of 2017, the company has a large customer base of over 100 million subscribers in over 190 countries, with over 51 million subscribers located in the United States. The company was founded by Reed Hastings and Marc Randolph in 1997. The corporate headquarters are located in Los Gatos, California. In 2016, Netflix bought around 126 original movies and added them to its catalogue, which is more than any other cable provider ever achieved in the world. [...]
[...] - Legal framework for the execution of contracts. - Protection of intellectual property. - Trade regulations and tariffs relating to services. - Favoured business partners. - Antitrust laws relating to cable television systems. - Price regulation and associated mechanisms for regulating prices for services. - Tax policy, tax rates and other tax incentives. - Wage legislation and labour codes, as well as minimum wages and regulation of overtime. - Regulations linked to the working week in cable television systems. - Compulsory social benefits. [...]
[...] Some of the legal factors Netflix must take into account when entering a new market are: - Antitrust law in the cable television industry across countries - Discrimination laws - Copyright, patents and intellectual property laws - Consumer protection and electronic commerce regulations - Employment laws - Health and safety laws - Data protection regulations (personal data, browsing, etc.) Video piracy is the cause of huge loss for the streaming television and film industry, so the penalties for violators should be more severe. For more than 30 content providers (including Netflix), piracy represented around 5.4 billion downloads of multimedia content in 2016 alone. Streaming on multiple devices should be verified, as users can share their credentials to reduce the bills related to their subscription. In early 2016, Netflix announced that it would increase subscription prices, but it was not clear how current users would be affected. As a result, Netflix received a class action lawsuit from angry customers. [...]
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