The demographic shown by the Israel Central Bureau of Statistics (ICBS). Israel counts approximately 8,6 million inhabitants. Israel is separated in different ethnicities. 74.8%, so the biggest part of Israel are the Jews, 20.
85 of the population are Aran and the remaining 4,4% of this population are called the others. The others in this case can be defined as members of the family of Jewish immigrants who are not registered as Jews and the others are non-Arabs. (Central Intelligence Agency, 1947) There are not that many ethnicities in Israel as you can see. That means that u do not have to make like 20 different kind of subtitles or change the content.
It is easy to reach the biggest part of the country and Netflix is able to use a fewer different languages that most of this country is able to understand. And that is not hard in Israel, because most of the inhabitants do speak English over here. The age-structure will be shown down below containing age, percentages: Table 2.
Age structure Israel Age structure Percentage 15-24 years 15.52% 25-54 years 37.15% Source: (Central Intelligence Agency, 1947) In this age structure, you are able to see that more than 50% of this country is aged between 15-54. These people are potential customers for Netflix. And this is a lot of people that probably will take Netflix into their possession. Economic The valuate that is been used in Israel is called shekel.
Israel has a technologically advanced free market. The GDP growth of Israel in 2014 till 2017 was roughly 3% per year. And this a lot. If we look at the purchasing power parity of Israel we can see that its growing with more than 10 billion a year. In 2016 it reached more than 300 billion dollars. The growth rate in 2016 was 4% in Israel, so in the last 3 years the growth rate of the last year was the highest of them. If a look is taken at the GDP per capita in Israel, this is $35200.
Compared to the world they ended up on place 54 of the countries with the highest PPP. Most common industries in Israel are the high-technology product. (Central Intelligence Agency, 1947) The high amount of the GDP per capita shows that Israel is a wealthy country and that the inhabitants earn more than enough to purchase Netflix. Besides the fact the PPP of Israel high they also have a large budget, 83 billion-dollar available revenues and more than 90$ billion for expenditures.
Israel does actually face some structural issues in long terms, including the fact that the low labour participation has low rates for its fastest growing social segments. (Central Intelligence Agency, 1947) They are able to use this money to improve their infrastructure as example. And to make internet accessible for everywhere in the country. So that the inhabitants are able to watch Netflix without bugs and full resolution. Pagina-einde Social-cultural The population of Israel is split in a few groups. With 75,4% of the country is Jewish as you may already know, 20,6% is Arab and the other 4,1% are minority groups. Most of Israel used to be Palestine in the past. So we cannot say that there is not still noises here and there.
Tel Aviv and Jerusalem are considered as the main cultural hubs of Israel. And Jerusalem in particular gets the most attention, because this city is very important for the Jewish people as for the Muslims. If we look at the languages that are spoken are Hebrew and Arabic the official languages which are spoken in Israel. But like I said before most of the inhabitants in Israel can speak English. About education we can say that Israel is a well-educated country. In 2012 was Israel the second most educated country in the world. Then we have the film industry of Israel.
Filmmaking has undergone a major development since the 1950’s. The Israeli film industry continues to gain worldwide recognition through international awards. This shows us that the inhabitants of Israel are interested in the world of the film industry. Maybe it is even possible that their own made movies will be shown on Netflix. Technological In a total of 6.521.
539 people in Israel 79.8% of the population uses the internet. This means that almost 80% of the inhabitant are using the internet and they are also able to watch Netflix.
When a look is taken on the mobile phones, the subscriptions per 100 inhabitants are 129 (Central Intelligence Agency, 1947). So some of the inhabitants do own more than one mobile phone. As you may know, it is also possible to watch Netflix on your mobile phone. All these people that do own one (or more) can use it to watch Netflix. Last of all, most of the citizens have a working internet connection or even mobiles phones and other devices.
Israel had the most highly developed devices in the middle east. They also have a good system of coaxial cable and microwave radio relay this means that all systems are digital. Geographic Israel consists of a of 20.770 square km, of which 20.230 square km is land and 440 square km of Israel is water.
Israel also has a 273-km coastline which can be easily reached. As you can see Israel is not that big of a country, so it is not that hard to reach all parts of it and provide a good internet connection for the inhabitants. (Central Intelligence Agency, 1947) If we take a look at the border countries Jordan, Syria, Egypt, Lebanon, and Gaze strip, we can say that there are conflicts going on in most of these border countries.
This maybe can affect Israel if these conflicts do get out of hand. If we look at the population of this country we can say that this is concentrated in and around Tel-Aviv, as well as the Sea of Galilee. But the south remains sparsely populated. This make it easier to provide good internet connection for the people over there. (Central Intelligence Agency, 1947) Political-legal Israel has a parliamentary democracy in which they have mixed legal system of English common law, British mandate regulations and Jewish, Christian, and Muslim religious laws. In Israel, there are some active political pressure groups like the Breaking the silence, B’tselem, peace now and Yesha council. But Israel is not corrupt at all, they got a president and a head of government and they also have elections where you are free to vote for the party you like.
Israel rates with a score of 64 on the World Transparency, that is the 28th places in from all total 176 registered countries across the world. (Transparency International, 1993) Because of the transparancy you also wont have things like censorship etc. for movies and series on Netflix. This is a very important key for streaming, people will be able to watch their favorite movies or shows. Israel (CAGE) Cultural Distance Power Distance Israel has a low score if a look is taken at the power distance, Israel scores 13 to be exact. And that is very low compared to China. The power distance means that the power is not distributed evenly. In the society individuals are not equal.
This leads to an unbalanced country (Hofstede, sd). Individualism With a score of 54 point, does it clearly show that Israel has a mixture of collectivistic and individualist. Often do families have many children, and have good bands with other family members. The communication towards people is meaningful, a very strict to the point (Hofstede, sd). Those aspects have much potentials, Netflix has a standard option which have multiple user accounts so it can easily shared between family members. (Hofstede, 2014) Masculinity Israel scores also high on masculinity, with an exact amount of 47. This means Israel is neither a Feminine nor Masculine society. If a look is taken at the masculinity that is in Israel, this masculinity is shown by success and achievement.
And a Feminine society is often shown by the quality of life (Hofstede, sd). The potential regarding achievement in life and the quality of life, means that some things are shown in different ways. Netflix can make the quality of life much better, watch your favorite movie or show anywhere and everywhere. Uncertainty avoidance Israel is a strong uncertainty avoidant country (81). Rules are very important, rules like time is money, precision is the norm and also have the inner urge to work hard (Hofstede, sd). Netflix cares about customer satisfactions, because Israeli people have other interest regarding what they like to see on Netflix. Netflix can adjust their content library, to match the interest of the Israeli people.
Long term orientation This dimension describes how the country is dealing with their past and how they handle in the future. For this Israeli scores 38 points, this is very low. This means that the people in Israel do have thoughts in a normative way (Hofstede, sd). Indulgence It is clear that Israel is a restraint country, and stick to their laws and rules that they keep following. This indulgence restraint means the way that people do control their desires, these desires are based on their education.
This can also tell whether the Israeli society would have interests to watch movies in their spare time. (Hofstede, sd). Administrative Distance The State of Israel is divided into six main administrative districts, known as Mehozot singular: Center, Haifa, Jerusalem, North, South, and Tel Aviv districts, as well as the Judea and Samaria Area in the West Bank. All of the Judea and Samaria Area and parts of the Jerusalem and Northern districts are not recognized internationally as part of Israel. Geographic Israel is situated in the Middle East with a 273-km coastline bordering the Levantine Sea. The country has a total area of 20,700 square kilometers that makes it slightly larger than the American state of New Jersey (Central Intelligence Agency, 2018). The capital of Israel is Jerusalem. Despite that, there are some uncertainties about that and was recently in the news again.
Palestine also claims that this city belongs to their state (United Nations, 2017; Central Intelligence Agency, 2018). Most of the Israeli citizens lives in and around Tel Aviv. This major city is located at the coastline of the country which can be easy accessed by sea and by air. This is the city where the country welcomes the most international flights using the Ben Gurion International Airport. In contrast is Jerusalem located more in the midlands near de Palestinian border (Central Intelligence Agency, 2018).
Because most of the citizens lives in the urban areas, there are more chance for Netflix to gain customers. According to Central Intelligence Agency (2018) 92.3% of the Israeli citizens lives in an urban area. The cities Tel Aviv, Haifa and Jerusalem are the major urban areas.
The urban areas are more likely to have a better internet connection than in the midlands. Netflix could take advantage of it by focusing on these three cities. Economic (According to Doing Business (sd), Israel is categorized as a high-income country. This Mediterranean country has a GDP per capita of $35,200 and an unemployment rate of 4.8% (Doing Business, sd).
Besides that, there are no more than 22% of the populations that are below the poverty line ($7.30 per person per day). So, most of the Israeli citizens has a decent income that can afford a Netflix subscription.
Israel has their own currency they liked to call the Israeli new shekel. One ILS is equal to $0.294412 (XE, 2018). Netflix should consider this exchange rates, because the New Shekel is getting since last year more value. This can be a disadvantage for setting up subscriptions prices for the country. As of January 2016, all business in the country are paying a corporate tax rate of 25%.
When doing business in Israel, Netflix must present their profit 33 times a year to pay the Israeli taxes. The Value-added tax (VAT) is 17%, which means that Netflix must include this 17% of tax in her pricing (Doing Business, sd). The country has according to CIA (2018) an 83.55 billion-dollars revenue which 90.53 billion will be spend. These facts make Israel with more than 124 billion dollars, the 20th country in the world with the most current account balance.
So, overall, Israel is a country with citizens who can afford Netflix subscriptions.