socio Economic and Legal Framework : Netflix

Running head: SOCIO ECONOMIC AND LEGAL FRAMEWORK
SOCIO ECONOMIC AND LEGAL FRAMEWORK
Name of the Student
Name of the University
Author Note

1
SOCIO ECONOMIC AND LEGAL FRAMEWORK
Table of Contents
1. Executive Summary:...........................................................................................................2
2. Introduction:........................................................................................................................2
3. Literature Review on Knowledge economy and various drivers of economic change:.....3
4. Impact of legal framework and political factors.................................................................4
Role of political factors in the growth and development of Netflix......................................5
Political factors.......................................................................................................................5
Economic factors....................................................................................................................6
Social factors..........................................................................................................................7
Technological factors.............................................................................................................7
Sharing economy:...................................................................................................................7
Anti-trust laws relating to Netflix..........................................................................................8
5. Conclusion and Discussion:..............................................................................................10
6. References.........................................................................................................................11

2
SOCIO ECONOMIC AND LEGAL FRAMEWORK
1. Executive Summary:
In this report, the organization that is selected is Netflix. Netflix does its operation in
the media industry and video streaming industry. Recently, it is one of the leading
organization in area of industry related to the entertainment services and it operates in
more than 190 countries, and has a paid membership of more than 151 million. All the
issues related to Netflix and various drivers that is have economic change are discussed
here. The role of political factors and impact on legal factors are discussed with reference
to Netflix. Lastly, a recommendation is being provided upon the analysis that has been
found in this report.
2. Introduction:
Marc Randolph and Reed Hastings started Netflix in the year 1997. At that time, Reed
Hastings was the Chief Operating Officer. In the year 1999, the subscription services
were started. Netflix provides a streaming services which contains movies, television,
documentaries etc. Through this services they generate revenue and charged a reasonable
price for the subscription. They also provide video streaming services which is usually
referred as “Video on Demand”. All the shows are streamed and can be assessed in all
kind of internet devices and all kind of streaming services. The major competitors of
Netflix are Disney, Amazon and HBO as they all are in the media industry. In this type of
industry, the business operation can be carried in a vertically integrated way. The
strategic business unit of Netflix is that with the streaming services and in selling the
DVDs. In the international streaming, the videos can be stream outside their regional state
i.e. United States.

3
SOCIO ECONOMIC AND LEGAL FRAMEWORK
3. Literature Review on Knowledge economy and various drivers of
economic change:
The knowledge economy is usually dependent upon the quality quantity and
accessibility for the growth and it is greatly faced by the Internet. If there is sufficient
knowledge that it will have the power which will help them in both explicitly and
strategically (Siukkola 2016). Netflix has the power to access in knowledge economy
which has a very large database of the material. Netflix use to optimize the power as the
material that they have made is not accessible from anywhere else (Schnitzer 2019). All
the contents that Netflix produce are of high quality and it does not contain any
advertisement, so it produces a hassle free watching upon the experience on viewers with
a small monthly cost. Most of the subscribers use to believe that there the cost that is
being charged by Netflix is justified upon the experience and if is seen that as per the
competition to the other service providers for the other video streaming services that
contains advertisements and videos that are of poor quality (Shook, Hardy and Jorgensen
2018).
Netflix does produce daily of 4.6 billion content daily, through this data that is
produced should satisfy the needs of the consumers but the production and distribution is
not same as consumption and it is also not simple as the information is putting out there.
At the time of acquiring knowledge of the subscribers, there are experts who troll through
the internal document sharing system (Dagnino 2018). Thus, the method is efficient. It is
a much better solution that will help to adapt the need of the users and will help in
learning the ongoing recommendations and suggestions that is interactive and will have a
better learning experience. It will be a very great experience for the consumers if there
will be a platform that will provide solution with learning and development industry that
will allow to spread the knowledge seamlessly (Hallinan and Striphas 2016). As in the