Political Factors: In US

markets, audiences shift away

from traditional TV towards on-
demand streaming services
like Netflix. However, with
an increase in internet
usage, US telecom giants
AT&T have gone to the
Federal
Communications Commission
to insist on stricter usage
regulations. If passed through
congress, internet prices could
rise which would threaten the
business model of Netflix's
internet streaming service
(Romm, 2017). Controversial
EU
rulings will look to class
streaming services like Netflix
into the same category as
traditional television
distributors, i.e.
Netflix will have to abide under
the rule that 30% of content on
the platform needs to be
European. Furthermore, the
company will be taxed the same
26% levy as traditional media,
forcing Netflix to potentially
pass the costs onto
customers (Robinson and
Murgia, 2017).
Political Factors: In US
markets, audiences shift away
from traditional TV towards on-
demand streaming services
like Netflix. However, with
an increase in internet
usage, US telecom giants
AT&T have gone to the
Federal
Communications Commission
to insist on stricter usage
regulations. If passed through
congress, internet prices could
rise which would threaten the
business model of Netflix's
internet streaming service
(Romm, 2017). Controversial
EU
rulings will look to class
streaming services like Netflix
into the same category as
traditional television
distributors, i.e.
Netflix will have to abide under
the rule that 30% of content on
the platform needs to be
European. Furthermore, the
company will be taxed the same
26% levy as traditional media,
forcing Netflix to potentially
pass the costs onto
customers (Robinson and
Murgia, 2017).
Political Factors: In US
markets, audiences shift away
from traditional TV towards on-
demand streaming services
like Netflix. However, with
an increase in internet
usage, US telecom giants
AT&T have gone to the
Federal
Communications Commission
to insist on stricter usage
regulations. If passed through
congress, internet prices could
rise which would threaten the
business model of Netflix's
internet streaming service
(Romm, 2017). Controversial
EU
rulings will look to class
streaming services like Netflix
into the same category as
traditional television
distributors, i.e.
Netflix will have to abide under
the rule that 30% of content on
the platform needs to be
European. Furthermore, the
company will be taxed the same
26% levy as traditional media,
forcing Netflix to potentially
pass the costs onto
customers (Robinson and
Murgia, 2017).
Political Factors: In US
markets, audiences shift away
from traditional TV towards on-
demand streaming services
like Netflix. However, with
an increase in internet
usage, US telecom giants
AT&T have gone to the
Federal
Communications Commission
to insist on stricter usage
regulations. If passed through
congress, internet prices could
rise which would threaten the
business model of Netflix's
internet streaming service
(Romm, 2017). Controversial
EU
rulings will look to class
streaming services like Netflix
into the same category as
traditional television
distributors, i.e.
Netflix will have to abide under
the rule that 30% of content on
the platform needs to be
European. Furthermore, the
company will be taxed the same
26% levy as traditional media,
forcing Netflix to potentially
pass the costs onto
customers (Robinson and
Murgia, 2017).
Political Factors: In US
markets, audiences shift away
from traditional TV towards on-
demand streaming services
like Netflix. However, with
an increase in internet
usage, US telecom giants
AT&T have gone to the
Federal
Communications Commission
to insist on stricter usage
regulations. If passed through
congress, internet prices could
rise which would threaten the
business model of Netflix's
internet streaming service
(Romm, 2017). Controversial
EU
rulings will look to class
streaming services like Netflix
into the same category as
traditional television
distributors, i.e.
Netflix will have to abide under
the rule that 30% of content on
the platform needs to be
European. Furthermore, the
company will be taxed the same
26% levy as traditional media,
forcing Netflix to potentially
pass the costs onto
customers (Robinson and
Murgia, 2017).
Political Factors: In US
markets, audiences shift away
from traditional TV towards on-
demand streaming services
like Netflix. However, with
an increase in internet
usage, US telecom giants
AT&T have gone to the
Federal
Communications Commission
to insist on stricter usage
regulations. If passed through
congress, internet prices could
rise which would threaten the
business model of Netflix's
internet streaming service
(Romm, 2017). Controversial
EU
rulings will look to class
streaming services like Netflix
into the same category as
traditional television
distributors, i.e.
Netflix will have to abide under
the rule that 30% of content on
the platform needs to be
European. Furthermore, the
company will be taxed the same
26% levy as traditional media,
forcing Netflix to potentially
pass the costs onto
customers (Robinson and
Murgia, 2017).
SUPPLIER POWER: In US markets, audiences shift away from traditional TV towards on-
demand streaming services like Netflix. However, with an increase in internet usage,
US telecom giants AT&T have gone to the Federal Communications Commission to
insist on stricter usage regulations. If passed through congress, internet prices could rise which
would threaten the business model of Netflix's internet streaming service (Romm, 2017).
Controversial Rulings will look to class streaming services like Netflix into the same category as
traditional television distributors, i.e. Netflix will have to abide under the rule that 30% of
content on the platform needs to be European. Furthermore, the company will be taxed the same
26% levy as traditional media, forcing Netflix to potentially pass the costs onto customers
(Robinson and Murgia, 2017).
BUYER POWER: For streaming services like Netflix, the access to data servers
puts huge pressure on the environment. Netflix accounts for more than one-third of the
internet traffic in North America. With this, the company has been approached by numerous
campaign groups to push towards using renewable energy for its data centers. Moreover, to meet
growing demands from televisions and film studios over copyright access to content,
Netflix introduced blocking workarounds for users who access content from other
countries. Many users accessed other Netflix countries via technological workarounds. However,
for Netflix to meet copyright law standards with content providers, the company had to put
blockers in place. As a result, this will affect a small segment of users and its demand for the
product due to the limited accesses some Netflix countries have.
COMPETITIVE RIVALRY: In UK markets, younger viewers are watching a third less
traditional television and now turn to online streaming services for their entertainment (Bond,
2017). Besides, many customers are moving to watch video content on their smart-phones rather
than traditional larger screens. This trend shows a demand for content on the move to fit into
customers busy lives (Mintel, 2016). Moreover, the trend of customers seeing the pricey cable
options as less appealing considering the variety of online viewing options demonstrates the
influence of services like Netflix(Bradshaw and Bond, 2017).
THREAT OF SUBSTITUTION: Netflix have put money into R&D to support 4K streaming
efficiently (Mintel, 2016). The technological shift to 4K screen resolution has created an issue
for streaming services. Moreover, if their brand patented technology is created, this innovation
will give a huge competitive advantage to Netflix (Roettgers, 2017).Netflix's R&D Labs have
also developed new software codenamed 'Hermes' which automatically grades a translation of a
Netflix show. This innovation will allow for faster and higher quality translation efforts for
Netflix to serve its programming to its 190 countries (Roettgers, 2017).
THREAT OF NEW ENTRANTS: As of 2016, Netflix currently has over 100 million
subscribers accessing their service globally. One key factor is their competitive pricing against
traditional television services. In a current global recession where many customers spending
budgets are tight, services like Netflix are more attractive than costly traditional media
subscriptions. (Bradshaw and Bond , 2017)