4. This Photo by Unknown Author is licensed under CC BY-NC-ND
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PESTLE Analysis of Netflix analyses the brand on its business tactics. Netflix PESTLE Analysis
examines the various external factors like political, economic, social, technological (PEST) which
impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the
different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Netflix, as it helps to
understand market dynamics & improve its business continuously. PESTLE analysis is also referred to
as PESTEL analysis.
Let us start the Netflix PESTLE Analysis:
10. Every title generates a different type of revenue
and costs them a certain amount to stream on
their service. In order to first break even and then
to make a profit, they need to analyze how many
shows and films are provided and the type of
account the person holds. Then they need to
charge an appropriate amount.
15. • Before entering into any new market policies of the government are important to
look into as it affects the business. With advancement of technology, it becomes
important to keep data safe and secure. Intellectual Property Rights, Consumer
Protection Law, security laws should be taken care for the customers of that
particular country.
• Streaming on multiple devices at the same should also be checked because
users have a habit of sharing credentials with each other. Copyright issues is
the major area in which Netflix can suffer problem. So to safeguard themselves
they should have proper licensing for the series and movies being shown.
• It is also sometimes difficult for them to understanding and complying with local
laws, regulations and customs in foreign jurisdictions, including local ownership
requirements for streaming content providers.
• Netflix also need to block various technical blocks so as to make sure that
users from various countries don’t hack the content to stream online.
16. • In the Netflix PESTLE Analysis, the environmental elements affecting its business are as below:
• With growing concern regarding environment and sustainability environment factor become an
important aspect of PESTEL Analysis.
• Since Netflix is a company, whose business is completely online and they don’t have direct
impact on the environment still they do their best to protect the environment.
• To protect the environment Netflix tries to use renewable technologies to ensure sustainability.
• To reduce the Carbon footprint Netflix has invested in wind power to offset energy for cloud
storage. This is because according to a survey every streaming company adds to 1% carbon
footprint in to total global emission. Company tries to be sustainable as much as possible.
• Other step taken to protect the environment is that they try to minimize the use of paper in the
office.
• Only major factor that Netflix need to make sure is the use of heavy consumption of electricity.
ENVIRONMENTAL FACTORS
17. This Photo by Unknown Author is licensed under CC BY-NC-ND
• Netflix is the perfect example of a company that uses Internet to reinvent the market although the company
came as a disruptive, ahead of time, many are now trying to implement a similar business model to compete it.
• For Ex: The Viral Fever Videos (T. V. F) in India founded by Arnubh Kumar. While Netflix as a product is ahead
by a step, the future of it is uncertain as it has given way to other competitors like Google with Google Movies
and Amazon with Amazon Prime Videos also Hotstar by Star India and many more.
CONCLUSION
