Analyzing the Global Online Video Streaming Industry Using PESTLE

This report provides a PESTLE analysis of the global online video streaming industry, focusing on factors influencing the market dynamics. It examines political factors like government restrictions and internet pricing, economic factors such as competitive pricing and currency fluctuations, and social factors including changing viewing habits. Technological factors like data compression, legal considerations such as copyright laws and lawsuits, and environmental impacts related to data servers are also analyzed. The report references the impact of these factors on companies like Netflix, highlighting the importance of adapting to market changes and regulatory requirements. Desklib offers this and many other solved assignments for students.

Netflix

Netflix
“PESTLE analysis for global online video streaming industry”
Political factor
It has been observed that there are various factors that impact global online video streaming
industry. The first reason is related with the restrictions that are imposed on the countries; the US
has restriction on the countries such as Crimea, North Korea and Syria. The federal
communication commission has also set standards related to restricting the user regulations that
have impacted the online streaming services. Also, with the increase in the internet prices by the
government the negative impact has been examined on the demand of the services on the global
platform (Becker and Bode, 2018).
Economic factors
It is analyzed that there are Millions of the subscribers who are using the online streaming
services and due to this the companies have boosted the competitive prices over the expensive
media subscriptions. The companies focus on taking care of the budget of the customers and
offer them good quality services. Also, because of the currency fluctuations and exchanges rates
in different countries affected the expansion of the online video streaming industry. The value
added tax also affected the subscription price that boosted the price for the customers to avail the
services (Ebell and Warren, 2016).
Social factors
The live streaming services focuses on the younger class more if comparison is made with the
elder groups in the countries such as in UK. With the change in the social trends, the individuals
watch the videos with their smart phones instead of the large screens. The outcome showcases
the high demand for the online content and enhanced the living standard of the customers. It has
been analyzed that US cable companies are facing the huge loss because of the switching of the
customers from the pricy cables to induce the customers towards the different options of the
online video (Schnitzer, 2019).
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Netflix
Technological factors
One of the challenges that are faced by the online video streaming industry is related to data
compression of 4K for which the company has to consider the new patented technology. The
research and development labs are focusing on the new software which is known by the name of
Hermes and it is operated for the high quality translation service in more than 190 countries (Fast
company.2018).
Legal factors
The online video streaming industry has to consider the copyright law standards to restrict the
users. There are companies such as Netflix who faced the huge cost in 2016 just because of the
customer lawsuit filed against the subscription prices that are enhanced. So, this has impacted the
growth of the online video streaming industry in the market (Krish, 2018).
Environmental factors
The online data servers of the live streaming companies have adversely affected the
environment. The companies such as Netflix have collaborated with the Green Peace so that it
could be easy to maintain the environmental standards (Ellis, 2015). Therefore, it can be
concluded that the elements that have impacted the Netflix Company are political factor in which
the company is bound to pay taxes and also the economic factor has impacted the expansion of
the Netflix business due to currency fluctuations.
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Netflix
References
Becker, A.B. and Bode, L., 2018. Satire as a source for learning? The differential impact of news
versus satire exposure on net neutrality knowledge gain. Information, Communication &
Society, 21(4), pp.612-625.
Ebell, M. and Warren, J., 2016. The long-term economic impact of leaving the EU. National
Institute Economic Review, 236(1), pp.121-138.
Ellis, K., 2015. Netflix closed captions offer an accessible model for the streaming video
industry, but what about audio description?. Communication, Politics & Culture, 47(3), p.3.
Fast company.2018.Netflix. [Online]. Available at:
https://www.fastcompany.com/company/netflix [Accessed on14 MARCH, 2019].
Krish.,K. 2018.Netflix Culture Deck Co-Creator Says Leaders Need To Explain Context.
[Online]. Available at: https://www.forbes.com/sites/kevinkruse/2018/02/19/netflix-culture-
deck-co-creator-says-leaders-need-to-explain-context/#7c476c46590c [Accessed on14
MARCH , 2019].
Schnitzer, B., 2019. Netflix: Canadian (Dis) Content. Competing Sovereignties and the Cultural
Politics of Cultural Policy. American Review of Canadian Studies, pp.1-20.
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