3.

0 JUSTIFICATION ON PERFORMANCE

While almost every company that existed throughout the world facing the
difficulty to survive but Netflix is one of the rare companies that can be said the most
benefiting from the global pandemic. During the most difficult things that hit almost
every country around the world, the subscription and performance of Netflix company
rapidly increase and the justification for this kinds of performance is it affect by the
social factors.

There have many factors that affecting performance of Netflix and one of the
factors is social factors. People with the increased leisure time availability are more
likely to watch movies and TV shows and video games from the companies in this
industries. During the pandemic, has kept billions of people at home with nothing to do
but stream to any movies when they have nothing to do. Time spent on leisure and
sports is decreased as mostly country forbidden people to do any leisure and sports
activities in order to keep the virus not spreading. The pandemic left people with no
choice but have to stay at home. People become boring and start find something to kills
their time and this is when the Netflix hit big because one of the suggestions that keep
on spreading from the mouth of people is Netflix provide the movie and series that is
easy to access as well as the price for subscribe is not too high. It also shows that
people keep on stream from the Netflix platform all days as there almost nothing to do
at home. Although much of Netflix’s recent boom didn’t start until mid-March, when
more people were forced to stay home to help curb the spread of the novel coronavirus,
a series of popular, original shows and movies helped Netflix boost subscribers in its
first quarter.

During years of 2007 towards years of 2016, that years the internet served more
functions and become more popular as video streaming services such as Netflix rose in
popularity. The justification on how the performance of company increase during year
2007 to 2016 is consumers continue to look to the internet for any services they need
therefore the increased adoption of the internet be an opportunity to the production
company like Netflix. Service online is keep on increase in year of 2013 as well as the
amount of people that using smartphone, tablets and computer also give an effect to
the increasing of performance in the company. Beside with the help of technology that
rapidly grow which give a big help to the company, the introduction to another country
also give a big help to the performance.

Due to an expending the service of Netflix that were made by company during years
of 2007 and 2012 to many countries make almost all countries know the existed of the
Netflix. The country that been accept Netflix company to enter their country proudly can
be said it contribute a lot of increasing of subscriber as if that country does not accept
Netflix it will cause a big trouble and Netflix won’t be able to expended the service to
that countries. This statement state because network neutrality is the principle that
Internet service providers and that country governments have to treat all data on the
Internet equally. How to treat all the data equally is by not discriminating or charging
differentially by user, content, site, platform, application, type of attached equipment,
and modes of communication. If the network neutrality bill been rejected, then Netflix
will face a major threat because their existence depends on the internet and if the cost
for the users to using Netflix will become too high as a result of lack of network
neutrality then Netflix will be adversely affected. This cause the decreasing in the
subscriber and the performance.

Despite all the strategy doing by the Netflix company, the increasing in the stock
and subscriber not showing can be justified affected by changes in consumer spending
which it can be influenced by change in the rate of employment growth, interest rates
and tax rates. During the years of 2019, many countries that using service of Netflix
showing the increasing of unemployed people which even though they have leisure
time to watch the movies and series from Netflix but due to economic factors it stops
them to subscribe and choose to watch movie and series from another production
company that provide free access to movie and series. Other than that, another justified
on the performance of Netflix is due to extensive use of licenses for contents and
contracts with content providers also customer privacy issues there is a potential for a
lot of legal actions against Netflix company.