M RahmanStakeholders of Netflix (Stakeholder analysis of Netflix)
This article explores both the internal and the external stakeholders of Netflix. Netflix is an American streaming service that offers a great amount of entertainment contents in more than 30 languages and 190 countries. It is one of the largest and trusted entertainment media brands in the world.
Netflix has been transforming the way people watch movies and TV shows for a long time. From its humble beginning as a DVD rental service to its current position as one of the world’s leading streaming services, it has been at the forefront of the entertainment industry. For it to continue to be successful and profitable, it needs to ensure that it is engaging with its stakeholders in a meaningful way.
Internal stakeholders of Netflix
The main internal stakeholders of Netflix are the members of the leadership team, employees, and shareholders.
Netflix’s leadership team
The key figures in the leadership team are the founder and co-CEO, co-CEO and chief content officer, and chief officers in different functions such as marketing, legal, finance, communications etc. A number of the vice presidents of different functions and regions also play a big role in the success of the company.
Employees of Netflix
Stoll (2022) reports that Netflix has around 11,300 full-time workers. They work in one of the four teams within the company i.e. product, marketing and publicity, content, and corporate functions. The success of the company hugely depends on its ability to hire the best people who can research and develop cutting-edge solutions to the problems it is faced with.
Shareholders of Netflix
Institutional shareholders hold a major ownership of Netflix. However, the company has many individual shareholders as well. Shareholders have financial interests in the company, and therefore, Netflix needs to keep them informed regularly.
External stakeholders of Netflix
The main external stakeholders of Netflix are customers (subscribers), competitors, independent producers of content, pressure groups, and regulators.
Subscribers of Netflix
Netflix has over 231 million subscribers globally. It is a subscriber driven company, as the main income comes from subscriptions. It needs to keep subscribers satisfied, as dissatisfaction may lead them to unsubscribe resulting in loss of revenue for the company.
Netflix and many of its contents often highlight the experiences of people from underrepresented backgrounds; however, recent controversy concerning Dave Chappelle’s comedy ‘The Closer’ has affected its image as a diversity champion (Ward, 2021).
Independent producers working with Netflix
Netflix focuses a lot on the original contents. However, to remain competitive and achieve more customer satisfaction, it is looking forward to licensing more contents from independent producers. These independent producers and distributors may play a big role in the success of the company in the future.
Competitors of Netflix
The main competitors of Netflix are Amazon Prime Video, HBO Max, Paramount+, Hulu, Disney+, and Apple TV. Netflix needs to monitor their activities and contents regularly to ensure that it has the contents and other resources to gain competitive advantage.
More information on the stakeholder analysis of Netflix
In order to understand how to better engage with stakeholders, it is important for Netflix to analyse their interests, power, and relationship with it.
Analysing the interests of stakeholders of Netflix
Netflix’s customers are primarily interested in the quality and variety of the services it provides. They want to be sure that they are getting the best value for their money and that the services they receive are of the highest quality.
Netflix’s employees are primarily interested in job satisfaction, fair compensation, and access to the resources they need to do their jobs effectively. They want to be sure that their efforts are being valued and that they are being fairly compensated for their work.
Netflix’s investors are primarily interested in the company’s financial performance and the return on investment they can expect from their investments. They are interested in knowing that their investments are being managed effectively and that they will receive a return on their investments.
Analysing the power of stakeholders of Netflix
Netflix’s customers have a significant amount of economic power. They are the ones who use its services, and their satisfaction is essential for the ultimate success. If they are not satisfied with the services they receive, they may choose to switch to another streaming service.
Netflix’s employees have a very good level of power as well. If they are not satisfied with the way they are being treated or compensated, they may choose to leave the company and spread negative word of mouth which may impact on its corporate image.
Netflix’s investors have a significant amount of economic power. They provide the capital needed for it to grow and expand its services and their satisfaction is essential for its success. If they are not satisfied with the return on investment they are receiving, they may choose to invest in another company.
How does Netflix communicate with its stakeholders?
Netflix communicates with its stakeholders in a variety of ways. It uses a range of traditional and digital communication channels to keep them informed and engaged.
Netflix’s website is a key communication channel. It provides stakeholders with information about the company, its services, and its activities. It also provides them with an opportunity to provide feedback and ask questions.
Netflix also uses social media to communicate with its stakeholders. It has an active presence on a variety of social media platforms, including Twitter, Facebook, and Instagram. It uses these platforms to provide stakeholders with updates, announcements, and information about the company and its services.
Finally, Netflix also holds regular meetings with its key stakeholders. These meetings provide an opportunity for them to ask questions, provide feedback, and discuss their concerns and interests.
Summary of stakeholders of Netflix (Stakeholder analysis of Netflix)
To conclude, understanding the stakeholders is essential for Netflix to be successful and profitable. By analysing their interests, and power, it can better understand how to engage with them in a meaningful way.
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Last update: 07 February 2023
References:
Netflix (2023) About us, available at: https://about.netflix.com/en (accessed 07 February 2023)
Stoll, J. (2022) Netflix: employee count 2020, available at: https://www.statista.com/statistics/587671/netflix-employees/ (accessed 07 February 2023)
Ward, M. (2021) Netflix is in the middle of a diversity crisis. Here’s how experts say it could’ve avoided it, available at: https://www.businessinsider.com/netflix-dave-chapelle-closer-crisis-experts-couldve-avoided-it-2021-10?r=US&IR=T (accessed 07 February 2023)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
