5C analysis of Netflix (5Cs of Netflix)
This in-depth 5C analysis of Netflix (5Cs of Netflix) examines how several macro factors such as company, competitor, customer, collaborator, and climate impact on the strategies and operations of Netflix Inc. Netflix is a subscription-based online streaming service. Its name and fame have spread across the globe in a very short time.
Company (Netflix Inc.)
Netflix’s headquarter is in California, the USA. It is currently operating in over 190 countries and territories. This is a remarkable achievement considering the fact that it was operating in only 50 countries in 2015 (Brenan, 2018). It has different types of contents; however, it has recently started focusing more on its original contents.
Netflix generated revenues worth of $25 billion in 2020 (Stoll, 2021). It is a very popular entertainment service in many countries, notably the USA, Canada, and the UK. However, developing original contents is expensive. Similarly, the speed of the Internet is not the same everywhere in the world which disrupts its services. The article SWOT analysis of Netflix contains more information on the company.
Netflix works with a good number of partners. It works with smart TV companies, cell phone companies, cable operators and others to take its services around the world. So far, it has worked with many global names such as Apple, Microsoft, Samsung, Google, Amazon, Vodafone, Telefonica, and KDDI.
Netflix works with content providers, distributors, producers, and creators (Netflix, 2021). It works with many local partners to produce programmes in local languages. Working with these diverse collaborators help it develop new programmes and serve its subscribers the way it should.
Netflix has over 207 million paid subscribers worldwide with most of them coming from the United States and Canada (Stoll, 2021). The subscribers are generally loyal. However, Richwine and Rana (2021) report that the company has recently lost 430,000 subscribers in the USA and Canada. This is a concerning news, and therefore Netflix is working on expanding video game offerings to retain the new customers and attract new ones.
Netflix competes with a number of big giants e.g. Amazon Prime Video, Hulu, Disney+, HBO Max, Paramount+, and Apple TV. These competitors take a lot of the streaming market share away from Netflix. Apart from these big names, there are many local players that challenge it as well. For instance, local companies in France and India offer local-language video contents to challenge outsiders.
Though Netflix is not much concerned about the new entrants in the market, the existing ones are very powerful particularly Amazon Prime Video, Hulu, HBO, and Disney+ which are eating away its market share in the USA and beyond.
The last feature to address in the 5C analysis of Netflix (5Cs of Netflix) is the climate (also called context). Netflix is affected by many macro factors. For instance, it is not available in some countries due to geo-political circumstances. Likewise, its subscription fee when increased, is not affordable by many people with financial difficulties.
As Netflix caters to a global audience, it is essential for it to respond to local needs and tastes. Well, its response is evident from its local-language contents. However, it must pay close attention to the rules and regulations of the countries and regions where it operates as failure to do so may cost it dearly.
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Last update: 23 July 2021
Brenan, L. (2018) How Netflix expanded to 190 countries in 7 years, available at: https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-7-years (accessed 23 July 2021)
Netflix (2021) About us, available at: https://about.netflix.com/en (accessed 22 July 2021)
Richwine, L. and Rana, A. (2021) Netflix to add mobile video games as subscriber growth slows, available at: https://www.reuters.com/business/media-telecom/netflix-current-quarter-forecast-misses-estimates-shares-fall-2021-07-20/ (accessed 22 July 2021)
Stoll, J. (2021) Revenue generated by Netflix from 1st quarter 2013 to 2nd quarter 2021, available at: https://www.statista.com/statistics/273883/netflixs-quarterly-revenue/ (accessed 21 July 2021)
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.