Netflix Inc.: Governmental Regulation, Laws And Policies

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The organizational environment is a set of forces and conditions outside the organizations boundaries that have the potential to affect the way the organization operates. These forces change overtime and thus present managers with opportunities and threats. Changes in the environment, such as introduction of new technology or the opening of global markets, create opportunities for managers to obtain resources or enter new markets and thereby strengthen their organizations. (George and Jones, 2006)

Similarly, Reed Hastings and Marc Randolph founded Netflix Inc. in 1997 and today they have ventured into an online streaming media company offering their subscribers unlimited access to Movies, Documentaries, and TV Shows. With Online Streaming …show more content…

Technological

2.1 – Political Factors

The political environment in countries for Netflix is very critical. Governmental regulation, laws and policies impose threats and can even provide opportunities for economies globally. Netflix operate on a global platform and coming up with new strategies every year shall allow them to align their suit the need of every economy’s changing policies, laws and regulations.

One of the major political issues faced by Netflix Inc. is the restriction by the U.S. Government on countries such as Crimea, North Korea and Syria leaving a potential market untapped for Netflix. Unfortunately, Netflix isn’t even available in a largely populated country of China due to the permission issues from the Chinese Government (CNET, 2017).

Changing tax laws or tax rates are impacting political challenges faced by Netflix Inc. These are likely to change overtime affecting the revenues and the expenses of Netflix Inc. On the 1st of July 2017, the Federal Government in Australia applied Goods and Service Tax (GST) at 10% to all intangible digital products and services supplied into Australia making software downloads and streaming services more expensive. It is named the ‘Netflix Tax’ and it is exempted in B2B markets and is imposed solely on consumers. (CBC News,

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