Strategic Management & Corporate Social Responsibility

This report analyzes the UK's TV streaming industry using a PESTLE framework. It examines the impact of political, economic, social, technological, environmental, and legal factors on the industry's growth and identifies key opportunities for companies like Netflix and TV Now. The report highlights the increasing popularity of streaming services due to changing consumer preferences, technological advancements, and economic factors. It also discusses the challenges related to licensing, content privacy, and environmental impact. The analysis concludes by emphasizing the significant growth potential of the UK TV streaming market, driven by consumer demand and technological innovation.

STRATEGIC MANAGEMENT &
CORPORATE SOCIAL RESPONSIBILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MACRO ENVIRONMENT FACTORS AND PESTLE ANALYSIS............................................1
T.V INDUSTRY AND PESTEL ANALYSIS................................................................................2
OPPORTUNITIES FOR T.V/VIDEO STREAMING INDUSTRY...............................................3
REFERENCES................................................................................................................................4
APPENDIX 1...................................................................................................................................5

INTRODUCTION
Streaming television industry has become popular in now days as the individuals are not
paying for the television channels which were used in earlier. Due to the up-gradation in the
technology, all the videos, channels etc are available on the internet. Basically, TV streaming
industry can defined as delivering the entertainment programs by using different mediums such
as internet. In UK, it has been seen that video on demand service covers 4% and 32 hours per
week video are being watched by the UK citizens. Further, from the statistics it has been
witnessed that You Tube has been stated that viewing of the individual is increasing at 60% rate
in UK. Besides this, it has recently been in trend because for the UK citizens it is easily
assessable. For analyzing this industry, it is important to use macro analysis which will help in
evaluating the factors of UK environment which will be affecting the T.V streaming industry.
The advantages of macro are that it covers all the aspects which can impact the T.V streaming
industry (Simpson, 2013). On the other hand, the disadvantage is that if the process is carried out
in the biased manner then it will affect the decisions and will result in huge loss. This report it
will evaluate this industry by using PESTLE analysis which will help to analyze the opportunity
that can be grabbed by the NETFLIX and T.V Now companies.
MACRO ENVIRONMENT FACTORS AND PESTLE ANALYSIS
Macro environment includes all the external factors which affect the activities of the
company. This can be understood by using PESTLE analysis.
 Political analysis- It includes factors such as trade policy, laws and regulations made by
government of UK etc.
 Economic analysis- This is basically concerned with the economic condition of UK
which includes, interest rates, inflation rate etc.
 Social analysis- It considers social aspects which includes behavior, attitude of the
citizens etc.
 Technological analysis- It includes R&D and discuses about technological up-gradation
in UK.
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 Environmental analysis-It consists of the factors which pertain in the environment like,
climate, water and the firm activity impact on these factors.
 Legal analysis- It generally includes the laws which are made for the safety of the public
like consumer law, health and safety law etc.
T.V INDUSTRY AND PESTEL ANALYSIS
With the emergence of new industry, political factors highly impact the operation of the
business. The legislation Communication Commission’s Telecommunication Act of 1996, was
made by the UK government which encouraged competition in this industry. Besides this, the
main issue with the government is that they should be allowing access to all internet website or
not. In the recent time, it has become the main concern for the UK government as because of the
increasing crimes and unethical means. According to the economic situation, UK unemployment
rates are increasing and the disposable income of the individual are going down (Sodagar, 2011).
Due to this reason, the citizens are switching to streaming television industry as it is cheap as
compared to the traditional channels. Further, the growth of NETFLIX has been increasing
which is showing an upward trend in the T.V streaming industry of UK.
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Figure 1: Statistics of UK streaming industry
(Source: Statistics of UK streaming industry, 2015)
Through the social factors, it can be stated that with the changing taste and preference of the
consumers, they are spending more on their mobile phones. This is the major opportunity to
increase the market. In UK All the videos, movie are watched on the internet which is giving
revenue to TV Now etc. besides this, it can be said that, the individual time is more consumed on
the internet as they are generally working on it. This make it more easy for them to see live
videos movies from NETFLIX and T.V Now in UK. This industry is gaining preference because
of the advancement in the technological aspects. In the earlier times, in UK, there were hardly
people who were having internet connection. But now, all the individuals who are having
phones, tablet possesses connection (Waterman, Sherman & Ji, 2013).This technology has high
impact on the environment as more and more people will be using techno savvy devices which
will negatively affect the environment. In this, the carbon foot will be increased and the energy
consumption will be more. This will highly impact on the environment of UK. There are many
legal factors which are attached with this industry. In this, there are many sites which are legally
banned by the government as they are not for the users to see (Abboud& et.al., 2010).
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OPPORTUNITIES FOR T.V/VIDEO STREAMING INDUSTRY
The two major opportunities which can be identified through the PESTLE analysis are as
follows:
 Changing taste and preference of the consumers- As the individuals of UK have become
technology savvy and they are using mobile phones as well as different mediums for day
to day activity. Further, they prefer these sites because it is easy and they can watch at
any place ad at any time. As due to the demand for the T.V series, they believe to see all
the episodes in one go (Sentinelli, Marfia, Gerla, Kleinrock& Tewari, 2007). Even
besides this, as the cricket has been founded by England so the individuals of UK who
are fond of cricket want to see live video and want to enjoy in the office. So for the UK
T.V streaming industry, it is great opportunity to expand their business and provide
different services so that the industry can attract more users.
 Advancement in technology and economical of individual- Through technological
advancement it has been witnessed that; the UK industry will be highly progressing
because of the new gadgets which are shifting the individual of UK from the traditional
method to the advanced one (Streaming television is now mainstream, 2016). As they are
finding it cheaper to see the video and movies on the internet rather than giving money
for the television. Further, the consumers have to pay for all the channels in the television
but through NETFLIX and T.V Now they have the choice and they will only pay for that
(Thomes, 2011). This makes the UK T.V industry more economical and even on their
own terms they can demand for it. By seeing the live videos as well as listening to the
audio they can become updated. From this, it can be witnessed that, the UK has vast
scope in the future and it will see a quick shift from the traditional method to the T.V
streaming line.
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REFERENCES
Books and journal
Abboud, O., Zinner, T., Lidanski, E., Pussep, K., & Steinmetz, R. (2010, June).
StreamSocial: A P2P streaming system with social incentives. In World of Wireless Mobile and
Multimedia Networks (WoWMoM), 2010 IEEE International Symposium on a pp. 1-2. IEEE.
Sentinelli, A., Marfia, G., Gerla, M., Kleinrock, L., & Tewari, S. (2007). Will IPTV ride
the peer-to-peer stream?[Peer-to-Peer Multimedia Streaming]. IEEE Communications
Magazine, 45(6), 86-92.
Simpson, W. (2013). Video over IP: IPTV, internet video, H. 264, P2P, web TV, and
streaming: A complete guide to understanding the technology. Taylor & Francis.
Sodagar, I. (2011). Industry and standards.
Thomes, T. P. (2011). An economic analysis of online streaming: How the music industry
can generate revenues from cloud computing. ZEW-Centre for European Economic Research
Discussion Paper, 11-039.
Waterman, D., Sherman, R., & Ji, S. W. (2013). The economics of online television:
Industry development, aggregation, and “TV Everywhere”. Telecommunications Policy, 37(9),
725-736.
Online
Streaming television is now mainstream. 2016. [Online]. Available
through:<http://www.businessinsider.com/afp-americans-stream-away-in-shifting-tv-
landscape-2015-5?IR=T>. [Accessed on 28thOctober, 2016].
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APPENDIX 1
Table 1: PESTLE analysis of UK T.V streaming industry
Factors Implications Significance Time frame
POLITICAL FACTORS
 License
 Privacy issue
The main problems which
are faced by UK industry is
obtaining license. As the
OTT is scared in providing
license to the providers as
they fear that privacy of
content can take place
which is not good for the
business. So for TV Now, in
the earlier time it was
difficult to acquire license.
It is important to
issue license
because without
it the government
would not allow
it to broadcast the
content in UK.
The license has to
be renewed in the
given time
duration of the
expiry.
ECONOMIC FACTORS
 Increasing
population of UK.
 Employment level.
Economic factor is the
increasing population of UK
and the vast majority of
youngsters in the economy.
This is increasing the
demand for the UK T.V
streaming videos. This will
help in giving employment
to the individual with rise in
demand of streaming
industry.
It has to be
considered
because they help
the UK industry
to identify the
demand and with
the help of that
they can
introduce new
programs.
Economic factors
data should be
taken in the short
period of time.
SOCIAL FACTORS
 Changing taste and
preference of UK
The life of the individual of
UK is busy, so for them it is
This helps in
casting the shows
Social factors
changes
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individual
 Increasing demand
for serials
very convenient for them to
save the shows and watch
them at free time. Further,
the youngsters of UK are
fond of T.V series and they
prefer to watch at a stretch.
As in television, every day
one hour episode is casted
which is not preferred by
the today’s UK generations
according to the
needs and
preference of the
consumer.
Further, it will
attract more users
to it.
continuously so it
is required to
review the change
immediately.
TECHNOLOGICAL
FACTORS
 Increasing
technological
gadgets
 Consumer use
several electronic
medium
The tablets, computers as
well as mobile contain high
resolution which helps UK
individual to see movies
same as which is seen in the
theatre. For this industry, it
is profitable as because
there are several mediums
through which UK citizens
can use the service.
It is important for
the UK T.V
streaming
industry as this
will help the
companies to
make new shows
which can be
watched on
different gadgets.
The industry
should consider
this factor in short
and long span of
time.
ENVIORNMENTAL
FACTORS
 Consumption of
lead and copper
 Adversely affect the
environment
It has been shown that using
more of the electronic
devices it will consume lead
and cooper. This will
ultimately reduce natural
resources of UK
It is important for
it to take into
consideration
because it harms
the environment
which will
further destroy
the natural
resources.
In the short span
of time, the
companies are
required to
monitor the
fluctuations.
LEGAL FACTORS
 Age factor
 All programs are
not for below age
There are some shows
which are only for the 18
above individual. The
It is important for
the UK T.V
industry to not
It is the long term
consideration.
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