2. PESTEL ANALYSIS
POLITICAL
ECONOMIC
SOCIAL
The political factors refer to the influence that the government and its policies have on the company. It includes various factors, including tax, foreign trade policies, and fiscal
policies. Apart from this, other things having a direct impact on the organization are also a part. The political factors influencing decisions are the following:
, censorship has proven to be an issue. Due to its content, it has been prohibited in some of the biggest economies like China.
Due to the government rules and policies, the entire content of Netflix is not available in all countries and its viewers. Due to this, Netflix faces considerable loss.
Restricted access does not allow to operate in many countries. Even if the brand agrees, the government norms do not allow it.
Economic factors assess the supply-demand graph of companies. Economic growth, exchange and interest rate, inflation rate, and others have a leave a long-lasting
impact on the company's financial condition. For example, the purchasing power of the consumer can determine revenue growth. Following are the economic factors that
influence business decision.
•The fluctuating exchange rate affects its economy when buying others’ content. However, can profit from its original content like movies and TV shows.
•The loyal customers of complain about a steady hike in the subscription price. High-quality content can be the solution to satisfy the viewers to make them realize the
content is money’s worth.
•Increased competition in the streaming services poses a threat to Netflix with the uprising of a powerful rival with high-quality content.
•Content piracy is a massive threat to the security of the company. It affects profitability.
The socio-cultural background of a potential market is determined by the social factors of the PESTEL analysis. It indicates the preferences of the consumer and their need based on a
careful study of cultural trends, demographics, societal norms, customs, population analytics, and more. Netflix should consider these below social factors for future growth and
development:
The splendid work environment works in favor of the company.
Netflix and its CEO are known for their generous nature, and their kind gestures have touched people. Not only do they allocate 2% of their annual income to the black community, but
they also support students with low family incomes.
The flexibility has benefited the company. With the latest trend of watching the live stream on mobile, Netflix has made it possible.
3. PESTEL ANALYSIS
TECHNOLOGICAL
ENVIRONMENTAL/ETHICAL
LEGAL
Innovation in technology shapes a healthy business. Technological advancement, automation, technical awareness plays an essential role in the operation of the industry
and its popularity. Following are the technical factors influencing business:
•Ione can avail high-quality video with minimal data being spent. It is one of the many advantages of the company.
•The continuously changing algorithms often confuse the users. The best example of this is the content rating system.
•Hermes, the automatic translating software, is quite popular with users.
Environmental concerns like low carbon emission, environment-friendly service, reusable resources, and focus on sustainability are the basics of ecological awareness.
Businesses must consider the ecological aspects while planning their operations. Following environmental factors influence business a lot:
•The company’s recent investment in joining hands with EPA showcases its willingness to shift to renewable energy. Well, this increased environmental awareness may
lead to growth.
•Other steps towards a sustainable future include reduced use of papers in the office.
•The media company operates almost online and leaves no direct environmental impact. However, its electricity consumption is quite heavy.
Legal factors refer to the laws of a country or state that the company must abide by if they are operating there. Some aspects are consumer law, health and safety, labor
laws, discrimination laws, copyright, and more. The legal factors affecting business are the following:
•The sudden hike in subscription prices led the company to have a conflict with its customers. Some dissatisfied customers even filed class-action against the company.
•The continuous copyright claim drives to face issues with a small segment of its customers. Instead of blocking users from other countries, the company must come up with
a suitable strategy.
4. Customer
Need
Targeted?
The marketing strategy incorporates email to introduce new users to the streaming
platform. Then, segments users into groups and offers personalized product
recommendations and relevant updates based on their preferences.
Viewers informed about new programs, builds excitement, and boosts viewership. A few
reasons why is so attractive is that it offers personalization at every level. It has a
simple, clean and intuitive user interface. Its ad-free, high-quality content is available 24*7
content marketing. has created sophisticated algorithms to recommend viewing to each unique
customer from a set of 80,000 different viewing categories.
Reaching your targeted audience directly with your content and
delivering a premium video experience that you control entirely.
5. Customer Journey Mapping
You can add steps as required
Step 1
Awareness
Step 2
Consideration
Step 3
Purchase
Step 4
Service
6. Awareness:
High-impact creatives: Billboard fix buys help drive quick reach and video views/traffic to your website/app. Mid-roll takeovers and bumper ads help in driving greater awareness with short,
actionable messages in 6 seconds or less. And for greater recall value, there is always the long-form video upto 3 minutes
2. Optimizing frequency: Campaigns with a frequency of 3.5+ show a 1.2x rise in aided awareness
3. Continuity: Brands that deploy consistent long-term campaigns see significantly better results in aided awareness (+12% when the second campaign is within 8-10 weeks from the first)
4. Asset mix: 14% lift in message association, which in turn grows campaign awareness when pre-rolls are combined with mid-rolls
5. Ad length: 30+ second creatives have a 1.4x lift in aided awareness. Longer edits work better in driving both, lower- and upper-funnel metrics
6. Creative best practices: The best results are achieved by following the C.L.I.P. principles:
Clear brand role in the story: Aligning context with communication helps drive better message association
Last frame, but also the first: The brand on all frames drives aided awareness
Integrate early: Message association is driven better when the brand’s key proposition is integrated early on
Presence of human/celebrity: A celebrity or human drives better brand recall
You may check our detailed report on creative best practices here.
As demonstrated, OTT platforms are essential to drive brand awareness with changing consumer habits. Given the advantages Offers, it most definitely is the natural choice for maximising
marketers’ efforts.
Service:
How do OTT services work?
Over-the-top (OTT) refers to the method of sending content over a high-speed Internet connection, instead of the content being shared by traditional distributors such as broadcasters, cable
and IPTV operators. OTT content is, in most cases, film or TV content which is watched on a phone, laptop, tablet or connected TV.
Consideration:
OTT is the ultimate platform for reaching your targeted audience directly with your content
and delivering a premium video experience that you control entirely. With OTT, providers can
get immediate user feedback through direct engagement and interaction.
7. MARKET
RESEARCH PLAN
OTT platforms help build a direct connection with customers
Initially, broadcasters used to rely heavily on traditional distribution methods
like cable and DTH platforms. The advent of OTT media streaming has made it
easier and more convenient for broadcasters to directly showcase their
content to customers
Google Keywords Tool.
Google analytics
The Google Keywords tool acts as a window into the behaviour of
consumers when searching online for products or services such as
yours
8. Netflix Prime Video
Competitor Analysis
Strengths Strengths Strengths
Weakness Weakness Weakness
Threat Threat Threat
Opportunity Opportunity Opportunity
Sony Liv
9. Netflix Prime Video Sony Liv
Competitor Analysis
Competitive Advantage Competitive Advantage Competitive Advantage
Positioning Statement Positioning Statement Positioning Statement
Financial Strength Financial Strength Financial Strength
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4P’s of Marketing
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15. BCG Matrix
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