PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Netflix PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the popular streaming platform. Political Factors in Netflix PESTEL Analysis There are many political factors that can affect the financial performance of on-demand streaming services such as Netflix. These factors include government stability, trade union activities, bureaucracy and government tariffs. Moreover, corruption, trade controls and the freedom of press also belong to the list of political factors with a potentially significant impact on entertainment services providers. Leaving a market because of war Netflix was indirectly affected by Vladimir Putin’s invasion of Ukraine. Having entered Russian market in 2016, the largest streaming service in the world announced on March 6, 2022 the suspension of its services, projects and acquisitions in the country. Leaving the country within 10 days after Putin declared war in Ukraine was an act of solidarity with Ukraine and other global brands suspending their operations in Russia. At the same time, Netflix had no other choice, because had the company remained in Russia its brand image would have suffered significantly with negative implications on the stock price. Government restrictions Apart from Russia, China is the only country where Netflix is not available. Although they dress it otherwise, the Chinese government has banned the popular streaming platform because they don’t want their citizens to be influenced by western culture. In other words, Chinese authorities fear that a wide range of shows and programs available on Netflix may influence the population and they might become more difficult to control. Taking into account the massive size of Chinese market, not being allowed to operate in the market is…Netflix PESTEL Analysis
Monday, September 18, 2023
Research Methodology
PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Netflix PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the popular streaming platform. Political Factors in Netflix PESTEL Analysis There are many political factors that can affect the financial performance of on-demand streaming services such as Netflix. These factors include government stability, trade union activities, bureaucracy and government tariffs. Moreover, corruption, trade controls and the freedom of press also belong to the list of political factors with a potentially significant impact on entertainment services providers. Leaving a market because of war Netflix was indirectly affected by Vladimir Putin’s invasion of Ukraine. Having entered Russian market in 2016, the largest streaming service in the world announced on March 6, 2022 the suspension of its services, projects and acquisitions in the country. Leaving the country within 10 days after Putin declared war in Ukraine was an act of solidarity with Ukraine and other global brands suspending their operations in Russia. At the same time, Netflix had no other choice, because had the company remained in Russia its brand image would have suffered significantly with negative implications on the stock price. Government restrictions Apart from Russia, China is the only country where Netflix is not available. Although they dress it otherwise, the Chinese government has banned the popular streaming platform because they don’t want their citizens to be influenced by western culture. In other words, Chinese authorities fear that a wide range of shows and programs available on Netflix may influence the population and they might become more difficult to control. Taking into account the massive size of Chinese market, not being allowed to operate in the market is…
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