Analytical Essay on Netflix: Global Context and Case Study

Introduction:

Netflix, Inc. is the world’s largest Internet entertainment provider with over 139 million paying subscribers in over 190 countries consuming TV shows, documentaries, and feature films through a wide spectrum of genres and languages. Members can watch as much as they wish on any internet-connected device, anytime, anywhere. Members can play, pause and resume watching, all without advertisements or obligations. We are a pioneer in the distribution of TV series and films on the Internet, launching our streaming service in 2007. Since this launch, we have developed an ecosystem for internet-connected screens and have added increasing amounts of content that enable consumers to enjoy TV series and movies directly on their internet-connected screens. (NASDAQ_NFLX_2018.Pdf, n.d.)

Global Context:

The aim of this portfolio is to look after the CSR (Corporate Social Responsibility) of the Netflix. The Sustainable Development Goals (SDGs) are a list of 17 global goals intended to be ‘a blueprint for a prosperous and more sustainable future for all.’ The SDGs, set by the General Assembly of the United Nations in 2015 and to be accomplished by 2030, are part of UN Resolution 70/1, the 2030 Agenda. the following are the 17 UNSD Goals.

The two goals which are being focused in this portfolio are: Goal 7: Affordable and Clean Energy and Goal 8: Decent work and Economic Growth.

Goal 7: This goal ensure access to affordable, reliable, sustainable and modern energy for all. Access to electricity has started to increase in the poorest nations, energy efficiency is continuing to develop and renewable energies are making strides in the electricity sector. Despite this development, some 800 million people remain without electricity and there is a need to pay particular attention to clean cooking fuels and technologies. The global electrification rate rose from 83% in 2010 to 87% in 2015 with a rise of 89% in 2017. In 2016, international flows of clean and renewable energy to developing countries amounted to $18.6 trillion, almost doubling from $9.9 billion in 2010. There are some targets set by these goals such as universal access to reliable, trustworthy and efficient energy infrastructure by 2030, also, to double the global rate of improvement in energy efficiency. (Goal 7 .:. Sustainable Development Knowledge Platform, n.d.)

Goal 8: in this goal more progress is needed, particularly for youth, for growing employment opportunities, reducing informal jobs and the gender wage gap and promoting healthy and stable working environments to create decent work for all. The mid-hour pay difference for gender was 12% based on data for 62 countries. The median gender wage difference in managing and technical careers, employees and trade, and plant machinery operators and assembly staff reached 20%. Its main target is to complete and productive work and fair employment is achieved for both women and men, including young people and disabled people and equal pay for equal work, by 2030. (Goal 8 .:. Sustainable Development Knowledge Platform, n.d.)

Case Analysis:

In context with Goal 7. Netflix is one of the world’s biggest content distribution networks, with over 100 million subscribers watching more than 125 million hours of Netflix every day worldwide. And this network needs energy to operate-but maybe not as much as people think. Over the past few years, they have been searching for ways to reduce our environmental impact, particularly in the field of energy, as this is its largest carbon footprint. Their sustainability strategy is to use as little electricity as possible and to use renewable energy for electricity that they directly use in their own facilities. In 2015, they shared impressive metrics about the increase in server efficiency and continued to make progress in this field. Today, their servers are capable of supporting 200% of the bandwidth per watt than they were two years ago. There’s the resources Netflix uses directly to operate its operations. This involves the use of electricity in the offices and their own or rented facilities. In 2016, the total energy consumption of this portion was approximately 40,000 megawatt hours (MWhs). Energy usage by partners was projected to be 100,000 MWh in 2016. Combined with direct energy consumption, its gross power footprint is 140,000 MWh. In 2016, Netflix purchased renewable energy from seven separate regions in the U.S., as well as projects in Canada, Western Europe and Brazil. We also contribute to reducing pollution by purchasing carbon offsets from initiatives that reduce, remove or avoid the introduction of carbon and other pollutants into the atmosphere. (Renewable Energy at Netflix, n.d.)

Now considering the Goal 8. Media streaming giant Netflix is giving back to its employees by improving their company labour policies. In 2015, Netflix employees were given 52 weeks of paid parental leave as part of their employment package. This benefit, which applies to both parents, gives employees the flexibility to come back to work and resume leave as it suits them. Additionally, the company also offers unlimited vacation time to their workers. These Netflix policy changes are based on the concept that happy employees are healthier, more motivated, and less likely to leave the team for employment elsewhere. (Examining Corporate Social Responsibility in the Industrial Space, n.d.)

Conclusion:

Netflix entered the EPA’s Green Power Collaboration programme last April, a cooperative initiative in which companies commit to use renewable power for some or all of their annual energy use. As part of this programme, it submits an annual report on its total electricity use and investment in renewables.

Since they were new to the system, they didn’t know how to equate our results with the others in their industry. As a result of their work to account for the entire electrical footprint, they have been recognised by EPA as the top tech and telecommunications group. This indicates that Netflix is on its way to achieve Goal 7 by 2030. Also, by applying beneficial schemes to their employees it helps to their employees to bound to the company rather going for another one. It also took several steps to make a more comfortable and healthier work environment to the workers.

References:

1. Examining Corporate Social Responsibility in the Industrial Space. (n.d.). Retrieved 3 May 2020, from https://www.thomasnet.com/insights/corporate-social-responsibility-examples/
2. Goal 7 .:. Sustainable Development Knowledge Platform. (n.d.). Retrieved 3 May 2020, from https://sustainabledevelopment.un.org/sdg7
3. Goal 8 .:. Sustainable Development Knowledge Platform. (n.d.). Retrieved 3 May 2020, from https://sustainabledevelopment.un.org/sdg8
4. NASDAQ_NFLX_2018.pdf. (n.d.). Retrieved 3 May 2020, from http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_NFLX_2018.pdf
5. Renewable Energy at Netflix: An Update. (n.d.). Netflix Media Center. Retrieved 3 May 2020, from https://media.netflix.com/en/company-blog/renewable-energy-at-netflix-an-update