Socio-Economic & Legal Environment

Socio-Economic & Legal
Environment

Contents
QUESTION 1..................................................................................................................................1
Executive summary.....................................................................................................................1
QUESTION 2..................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of the company............................................................................................................1
History of the organisation..........................................................................................................1
Understanding business model....................................................................................................2
Current business model of Netflix...............................................................................................2
QUESTION 3..................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
QUESTION 4..................................................................................................................................7
IMPACT OF LEGAL POLITICAL FACTORS.............................................................................7
1. Political factors influencing Netflix.........................................................................................8
2. Long term implications............................................................................................................9
3. Legal framework....................................................................................................................10
QUESTION 5................................................................................................................................12
Conclusion and Recommendations............................................................................................12
REFERENCES..............................................................................................................................13

QUESTION 1
Executive summary
There are several socio-economic aspects that can influence the business operations of an
establishment. Thus, it is crucial for the administration of the company to improve plan of
actions that are essential for its all development. Also, there can also be numerous political
aspects which can affect the business activities and operations as well as position of the company
in the marketplace. These can consider instability of the national authority and several rules as
well as laws. The written assessment is based in Netflix which is a entertainment and mass media
organisation and visions and mission of the company is to offer effective and quality services
and products to its target audiences so that their expected demands and requirements can be
fulfilled and meet in more developed manner. Netflix is a subscription based business model
making money with three simple plans such as basic, standard and premium, offering access to
stream series, movies and shows. Within the second question, the report will explain about
overview and history of Netflix as well as business model and trends which affecting its
business. Further, the third question is n form of literature review which covers information
regarding macroeconomic dimensions and drivers of change. Moreover, in next question 4 and 5
are covered data about PESTEL analysis of Netflix and conclusion & recommendations
respectively.
QUESTION 2
INTRODUCTION
Overview of the company
Netflix is an American over the top content platform and manufacturing organisation. This
business firm was incorporated in 1997 and is headquartered in Los Gatos, California
(Baboshkina, Savina and Morozov, 2018). This company was established by Reed Hastings and
Marc Randolph in Scotts Valley, California. The main business of the establishment is a
subscription based streaming services providing online streaming from a library of films and
television series, considering those produced in-house. In current time, the respective firm
steams movies and has more than approx 151 million paid subscribers in more than 190 nations
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across the globe. It provides a range of TV series, documentaries and feature films crosswise a
variety of genres and languages considering original productions.
History of the organisation
Netflix Inc. basically known as Netflix which is media streaming and video rental
organisation established in 1997 by American entrepreneurs Reed Hastings and Marc Randolph.
It is also considered in the designing of original programming (Song and et. al., 2018). In 1999,
the respective venture starts offering an online subscription facility with the help of internet.
Target audiences and subscribers select movie and television titles from Netflix’s web sites, the
show were then mailed to consumers in the form of DVDs, along with prepaid return envelops,
from one of more than 100 distribution centres. Even if consumer, basically rented for a flat
monthly fee because they wished for many movies per month and the quantity of DVDs in their
control at any one time was restricted as per to their payment plans. In 2006, the particular firm
launched the $1 million Netflix Prize contest to see if anyone could develop through 10 percent
its suggested system, an algorithm for forecasting an individual’s movie preferences supported to
past rental information.
In2007, Netflix started providing subscribers the option to stream some of its movies and
television demonstrates instantly to their homes by the Internet. For most subscription plans, the
streaming facilities were unlimited. The particular organisation subsequently partnered with
producers of different customer electronics commodities, considering video game console and
Blue ray Disc players, in order to assist its videos to be rivulet over an Internet connection to
those devices (Okewu and et. al., 2018). In 2010 the specific venture launched a streamlining
only plan which provided unlimited streaming facility but no DVDs Netflix then expanded
beyond the US through providing the streaming only plan in Canada in that year as well as in
Latin America and Caribbean i 2011 and in UK, Ireland and Scandinavia in 2012. In the starting
of 2013, with the episodic drama series House of cards, the establishment provided video content
manufactured particularly for its streaming facilities and in the end of 2018, it offered
approximately 1000 original titles. Its notable series considered Unbreakable Kimmy Schmidt,
Stranger Things, Narcos and The Crown. It also produced several movies particularly Roma that
won three Academy Awards considering best foreign language film.
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