Video Streaming Industry Business Analysis

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Added on 2020-02-14

Video Streaming Industry Business Analysis

Added on 2020-02-14

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Running head: TV/ VIDEO STREAMING INDUSTRYTV/ VIDEO STREAMING INDUSTRYStudent's Name:Professor's Name:Course Title:Date

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TV/ VIDEO STREAMING INDUSTRYTV/ VIDEO STREAMING INDUSTRYINTRODUCTIONThe TV/ video streaming industry coordinates the operations of studios, setsprograms that support audial visual content and facilitates over the air transmissions. Theglobal online television and the video market are growing rapidly. The US industry isgrowing the fastest and offers such providers such as NETFLIX and NOW TV (Kovacs andJansen, 2015).Advantages of macro business analysisA macro business analysis involves the analysis of the external businessenvironment and it essential for it helps a business to analyse and understand the threats andopportunities that it may encounter. These factors are beyond the control of the business andtherefore managers should be aware of the risks so as to know how to mitigate the businessrisks and also to take advantage of the prevailing opportunities.Disadvantages of macro business analysisThe macro business analysis is a time consuming process which requiresexpensive resources like expertise, money to cater for the analysis process and other expensesfor example acquisition of the necessary tools. It requires a lot of research work so as toestablish the exact external issues that face business.PESTEL analysis for the tTV/video streaming industryThe PESTEL analysis is a suitable framework that will be used to analyze andevaluate the TV/video streaming external macro environment. The external environment is anenvironment whereby a business has no control over, and the business has to either cope withthe situation or quit from the industry. The acronym PESTEL stands for political, economic,2

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TV/ VIDEO STREAMING INDUSTRYsocial-cultural, technological, environmental and social-cultural factors (Grünig and Kühn,5015).Political factorsPolitical factors are important for the industry for they provide the governmentlegislations, quality standards and licenses that are required by the industry. The anti-monopolies and competition have set a standard maximum share of the market that theindustry can have. The industry is affected by changes in copyright laws whereby the lawshinder the distribution of TV shows and movies. The issue of net neutrality is also affectingthe industry as internet service providers are required by the laws to treat the Internet dataequally. Also, laws concerning the personal data usage are changing affecting the individual'sability to leverage data.Economic factorsThe income of the customers is a crucial aspect in the development of theindustry. Economic factors determine revenue, and if consumers view online streaming as aluxury, the economy will be negatively affected. Interest rates affect the industry for examplewhen interest rates raise people's spending go down and when the interest rates are loweredthe people's spending rises and such changes the sponsors for the TV programs. The level ofinflation and unemployment determine the number of advertisement to be made. The foreignexchange volatility also affects the industry's revenue.Social-cultural factorsThe industry has to meet the needs of all ages, for example, there are severalchanges as people are not consuming the traditional media as they used to because of thedigital media. The electronic devices have affected the way the different markets are3

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Video Streaming Industry Business Analysis