Netflix

In a very competitive market, Netflix runs the world's leading global streaming platform, where scale, brand recognition and pricing power matter. It has revolutionised the way we watch films and TV shows but also had a profound impact on the entire entertainment industry, and it still leads the way.

The company often enjoys great success with its original multi-series content, such as Stranger Things and Squid Game, which are cultural phenomena generating large audiences, plus it continues to improve its offer to customers by diversifying into new areas such as live sport, gaming and cheaper subscription tiers supported by advertising.

Its dominant market position, strong balance sheet and pricing power make Netflix a strong candidate to be a long-term compounder of profits and earnings per share.

Much of the company’s carbon footprint comes from the physical production of its films and TV shows. Other production-related concerns include working conditions for film crews and contractors, which have historically been scrutinised for long working hours and a lack of fair pay.

Risks related to content responsibility include harmful or misleading material, cultural insensitivity, and lack of representation. While Netflix has introduced parental controls, maturity ratings, and PIN-protected profiles to help parents manage viewing and protect minors, child safety concerns remain due to the vulnerability of younger audiences.

Although Netflix collects limited personal information at sign-up, its large global customer base makes data security and privacy a key risk. A breach or cyberattack could lead to identity theft, fraud, regulatory penalties, financial losses, and erosion of consumer trust.