How Broader Contextual or Environmental Conditions have Impacted Netflix

How Broader Contextual or Environmental Conditions have Impacted Netflix
Name of Student
Institutional Affiliation
Instructor's Name
Due Date
How Broader Contextual or Environmental Conditions have Impacted Netflix
Contextual or environmental conditions are a range of factors that can influence business performance. They include regulatory agencies, clients and customers, technology, socio-cultural, economic, and political factors that exist differently and have different consequences across business organizations. Each factor will be discussed for Netflix's business model and its impact on Netflix currently and in the future.
Political Factors
Netflix isn't available in all countries; hence it cannot offer content from all countries. Countries such as North Kores, Syria, and Crimea do not consume Netflix content. The United States government has restricted any American country from conducting business with these countries, limiting the media company's expansion (Maesha, 2018). Governments around the world have intensified their restrictions on tech companies regarding the data collection of their clients. Therefore, Netflix has to tailor its services accordingly for each region depending on government regulations in the area. Netflix's services in the European Union are also threatened by the EU ruling classifying streaming services in the same category as traditional television distributors (Lee et al., 2018). The move would require Netflix to feature at least 30% European content and pay a 26% tax levy, which might require the company to pass the costs to their customers (Lee et al., 2018).
Economic Factors
Netflix is available for streaming in more than 190 countries. While this may be an advantage, their growth and expansion also predispose them to fluctuating exchange rates. Unfavorable foreign exchange rate variations could affect Netflix's earnings in its international streaming section (Maesha, 2018). In times of uncertai...