How Netflix has Changed the Global Entertainment Industry Assignment

Assignment Task

Netflix has a huge fan base and they could be the main winners for the subscription video streaming services. English and Hollywood helped Netflix to achieve their goals easier than other non-English streaming services, whereas Hollywood has been dominating the movie and TV content industry for decades. Therefore, English content became more common to listers and viewers globally and subtitles and voice covers started to take place. Netflix doesn’t target only native English speakers or people who speak different levels of English but they target many nations and cultures. Netflix nowadays produces in other languages besides English to attract more stakeholders and English isn’t the bar where the content ends (Larkin, 2018). The expansion globally made the company and its employees understand more strategies for global communication skills, where the company can improve and have more cross-cultural stakeholders. Therefore, the organization has a huge impact on communication which needs to be followed and stuck to, they choose to follow and adopt some agendas for their communications. The agenda that Netflix has adopted in some cultures are extremely wrong socially and politically. However, Netflix proved to these cultures that their products are too good to be not watched while implementing the agendas. In this assignment I haven't used MBO & SOSTAC planning models, instead, I have used from my own self studying other planning models such as PESTLE and Porter's 5 forces. PESTLE stands for political, economic, social, technical, environmental and legal. In addition, Porter's 5 forces are Competition in the industry, Potential of new entrants into the industry, Power of suppliers, Power of customers, and Threat of substitute products. Finally, 5000£ as a budget to achieve the aim of the objective in the shortest time period.

Body

1. Netflix is one of the largest American subscription video streaming services or production companies based in Los Gatos, California. From the year of 1997, This organisation started their operations and offers different types of television series and films library through the application of different types of distribution tales as well as its product known as Netflix originals. After analysing the revenue stream of September 2022, this organisation has generated around 223 million subscribers worldwide that include 73.3 million in the United States and Canada (Stoll, 2022). All over the world, the organisation has huge fan bases that help them to generate a good amount of revenue in the international market. Netflix can also be accessed with the help of different types of web browsers through the application of different software installed on smart TV setup boxes connected to televisions and other smartphones where the customer can enjoy different types of 4K video resolutions that help them to get a good amount of consumer best in an international market. In the beginning, Netflix was initially renting and selling different types of DVDs to their consumer base which has them get a good amount of results. However, after getting a huge amount of growth in the international market, this company has a revenue of 29.7 billion US dollars in the year 2021 (Macrotrends, 2022).

2. Stakeholder communication is one of the primary frameworks that help the organisation deal with a large number of stakeholders. In the international market, the organisation has different stakeholders such as customers, suppliers, IT teams and others. Through the application of proper stakeholder communication, organisations can develop a huge amount of building among team members to continue their performance with the help of all types of operations in a particular domain. The major aim of stakeholder communication is to develop a better major bonding among all the stakeholders, especially in the domestic as well as international market that helps them to get a good amount of revenue. Social identity theory can help the organisation to predict and specify the circumstances under which the individuals think about the group for performing operations (Perry et al. 2022). The major objectives of the stakeholder communication plan are three. Firstly, to understand the different types of existing issues and their responses used by the organisation. Secondly, to critically evaluate the situation of the organisation at the time of offering proper support. Lastly, to develop a better communication plan. One of the commication plans that has been used previously by Netflix was through social media, trying to break the television fandom ref. and the social creativity strategies where they seek for social change. Plenty of Netflix’s communication strategies are smart and beneficial and stakeholders would fall in to it. However, the social change strategies makes people aware that their could be some agendas behind watching their shows and start t look for other completives that are smarter in hiding their agendas if they have any.

3. For a well-known video streaming company all over the world, the application of content strategy is very much essential for retaining and attracting a large number of subscribers. As depicted by Snyman, and Gilliard, (2019), the major strategy of this organisation is the focus on providing timely and original content. Therefore, the organisation needs to spend a huge amount of significant share of their content expense on the original production which has more than 80% of the revenue. The price in the strategy of this organisation has also significantly negatively affected their operation and company value. Risk related to the pricing strategy is one of the major risk factors that affect the productivity of the organisation. The penetration rate of Netflix is quite mature in the US. However, less than 10% of the US are paid subscribers and more than 80% of digital video subscribers in the US are already known as Netflix users. It is true that the organisation is owning the biggest portion of the market share and is still in a place of great position. However, as opined by Perry et al. (2022), the global expansion of the organisation is very much slowed down by the local streaming service companies which are more easily accepted by the local customers or the local government. Losing market share due to the major computers such as HBO Max, Amazon prime, and Disney Plus affected the overall operation of Netflix and others creating major issues for the stakeholders from their major operation.

Another major issue that has been faced by the organisation is related to the supplier's proper collaboration in a particular domain. Despite being the best of the third-party studios for different movies and shows, Netflix is also very much dependent on a large number of partners for making their service available to their customers. Annual report of Netflix in the year (2020), agreements with different partners are majorly for 2 years duration. If Netflix cannot be successful in maintaining its existing relationship with new suppliers or partners, it can successfully maintain and create new ones with these partners. This type of operation can create a huge amount of this section among the people that affect the overall company value of the organisation. Other major issues that have been faced by the organisation are related to the regulation laws of different countries concerned with online and internet services. As illustrated by Augustine and Xavier (2021), every country has regulations that might be different from other countries regulations. For example, Therefore, different types of regulation and low-based risk can affect the overall operation of the organisation. New taxes fees at the time of starting their operation in the UK can create some major issues for organisations to continue their overall performance. Through the application of different types of stakeholder management matrix, it can be depicted that the regulation risk and heavy restrictions on different content strongly withheld from growing their subscribers.

Communication plan with situation analysis

Proper identification of the communication plan can be effective for the organisation and helps to mitigate different types of issues. The application of a communication plan is also effective to understand the issues by generating better revenue in a particular domain. However, the management needs to evaluate the situation of the organisation by conducting Pestel and Porter's 5 forces. PESTLE: Political The political factors of specially developed countries such as the US, UK and others are very much stable and provide better results and a positive impact on the organisation which helps them to generate a good amount of revenue. However, the covid-19 issue affected the overall performance of the organisation. As illustrated by Bobmanuel (2022), the global lockdown initiated by the political bodies of different countries affected the performance of human resources. However, the fidget swimming application got a huge amount of customer base during the covid-19 as most people were locked in their houses, which increased the subscription plan. Therefore, political factors put a medium impact on the organisation. Economic The economy is also very well known as one of the major situations which help the organisation to get a good amount of customer base in a particular domain. Having stability in the economic functionalities can help the organisation to generate a good amount of revenue in a particular domain. Due to the lockdown, the economic condition of the countries is facing so many issues that affected the overall performance of the organisation. However, as opined by Onyusheva and Baker (2021), people are showing their major interest in purchasing subscription time from Netflix due to their availability at home. Therefore, the organisation faced a medium impact from the economic perspective.

Social Social factors are also playing a major role which helps the organisation to get a social customer base. Analysing the social factors, most countries prefer to inbound different types of Sustainable policies in a particular domain. Offering video streaming applications, the organisation has a very less amount of pollution-related data which of our huge support to Netflix to get a code number of the consumer base in different regions of the countries.

Technical From a technical perspective, Netflix is very well known to be one of the technically advanced countries (ALBORNOZ, and GÓMEZ, 2021). From being headquartered in the US and having branches in other developed countries such as the UK, Australia and others, Netflix always gets a huge amount of benefits that provide a huge amount of support to them for continuing their video streaming operation in the future. Environment Analysing the environmentally friendly operation of Netflix, Netflix majorly provides different types of video streaming movies and shows to their customers that help them to generate a good amount of revenue. Therefore, they did not face any kind of higher amount of issues from the environmental factors which help them to generate a good amount of revenue. Legal Legal factors are also important which help the organisation to be safe from different types of regulations imposed by the government body of the country (Kweon and Kweon, 2021). Therefore, it can be depicted that Netflix faced a huge amount of medium impact from the country's environment. Different types of the company acting in different countries can put a negative impact on Netflix to understand and provide proper operations. Therefore from the legal factors, it faced a medium impact on the organisation.

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