Political and Legal factors
Government regulate the tax-policy for internet commerce. The policy was change and there is no assurance that increasing will not happened again.
An increase in the amount of revenue will be possible if the government will provide stronger piracy laws.
Also, all providers in the movie industry have followed the rules from the Motion Picture Association of America. For a company such as Netflix, it is easy to control, but the responsibility will be on users.
Economical
The movie industry is the entertainment industry and it doesn’t count as an vital importance. Decreasing the consumer income may decrease the demand and vice versa.
Экономический фактор может значительно повлиять на стратегию развития бизнеса. Т.к. кино является сферой развлечений, то при снижени доходов потребителей может уменьшатся demand of viewers. In another hand, in that situation may be happened shifting number of moviegoers from real cinemas to less expensive rental movie industry.
Sociocultural
The American life is changing. People spend more free time on the computer. New generations are getting more lazy, and young people will not go to a movie rental store to take a DVD and return it the next day. It is easier for them watch movies online. If there is an alternative way to watch movies without paying a fee, some people will continue to pirate movies.
Technological
The era of technology plays a positive role in the performance of Netflix. Purchasing a computer is not so expensive nowadays. Speed and unlimited scope of the internet play a positive role in this business.
Ecological
The transition from hard copies to online movies improving the ecological factor, by decreasing the number of factories that manufactured DVDs and reducing air pollution from transport vehicles.
Strength
Weakness
internal
+ Strong brand Identity
+ Fast receiving DVD + Flexible strategy
+ Personalization of movie preferences