Stakeholders 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. Founded in 1997, it is one of the largest and trusted entertainment media brands in the world.
Internal stakeholders of Netflix
The main internal stakeholders of Netflix are the members of the leadership team, employees, and shareholders. 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.
Stoll (2021) reports that Netflix has around 9,400 full-time workers. These employees 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.
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).
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. Netflix has over 200 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 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.
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.
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Last update: 23 October 2021
Netflix (2021) About us, available at: https://about.netflix.com/en (accessed 23 October 2021)
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Stoll, J. (2021) Netflix: employee count 2020, available at: https://www.statista.com/statistics/587671/netflix-employees/ (accessed 21 October 2021)
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 22 October 2021)
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.