Netflix is the world’s biggest internet television network. The company has presence in over 50 countries with over 50 million members who enjoy over 50 billion hours of great television shows.
In regard to its general economic conditions, the company is doing well despite the current economic hardships. As the economy gets hard, and people lose their jobs, more people are retreating into the television world to pass time. As a result, the company will make more profits. Netflix’s environmental scan reveals three main opportunities for the company’s success both technologically and demographically. The ability for in-house expansion original programming owned by Netflix is the greatest opportunity the company possesses. The second greatest opportunity is that its in-house content gives potential for the company to expand into the international market. The last major opportunity is the company’s cross over into internet television from broadcast television. In regard to laws and regulations, the company was greatly relieved when the congress passed legislation that allowed users of social media to opt in and automatically share history about the videos they watched. The company is targeting the family demographic for greater profits. In its website, there is a family friendly tab labeled “just for kids.”It features animated family friendly movies and television shows. Previously, the website featured content that was suggested by computer algorithms based on what users had viewed previously. The company does not show content that breaks societal morals. This shows respect towards societal values. Adult content is not shown by the site. In terms of technology, the company has revolutionized the movie industry by streaming movies to consumers rather than delivering the movies in the mail. The company faced a lawsuit from the residents of Los Gatos in California over its four and five storey buildings that it was building. The buildings exceeded the town’s limit that is set at three stories. The major global force which has hit Netflix is the evolution of internet television technology. Big television networks like ESPN, HBO, BBC and Canal+ are moving into internet television business.
Works cited:
"Netflix Thrives As Economy Slides." Forbes. Forbes Magazine, n.d. Web. 16 Oct. 2014. <http://www.forbes.com/2009/01/27/netflix-dvd-streaming-markets-equity- 0127markets40.html>.
"Netflix targets the family demographic." Los Angeles Times. N.p., n.d. Web. 16 Aug. 2011. <http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/08/netflix-family- demographic.html>.
