Netflix, we’ve all heard of it, most of us probably have a subscription. But how have Netflix managed to become one of the most well known companies worldwide? Through big data!
Netflix started off as a DVD rental service before making the switch to an online streaming platform. In switching to an online streaming platform their ability to collect data on users preferences grew exponentially. Similar to Amazon.com they could now use algorithms to suggest TV shows for users which increased consumer satisfaction and raised subscriber numbers.
But the way they really used big data well was to change the way that TV shows are developed and released. With access to over 50 million subscribers data, they are able to analyze consumers habits and preferences when it comes to TV shows and movies.
So whilst Netflix have used big data to form algorithms such as movie tagging and recommending movies you may like, the most interesting way I believe Netflix has used big data is to come up with their original programming such as House of Cards.
The House of Cards example
When House of Cards was looking for a home, Netflix knew a few things through their analytics and big data
-They knew that a large majority of their viewers enjoyed programs directed by David Fincher
-Subscribers also liked programs featuring Kevin Spacey
-Netflix users enjoyed the British version of House of Cards.
In knowing the above Netflix set to outbid other networks for the TV show, believing that through their big data analysis that this show would be a massive hit. And House of Cards was exactly that.
Netflix then continued to use data driven methods to promote the TV show basing the cover image and styles that had previously been successful for TV shows and movies on their site.
Netflix has continued to use their data to create their smash-hit Netflix TV shows including Stranger Things, Orange is the New Black (produced by the same producer of successful TV show Weeds, that many watch on Netflix) and Jessica Jones (based on success of Deadpool, Daredevil and the rise of Marvel)
As you can see Netflix has made some big decisions based upon big data to further their business offerings but also to keep subscribers happy and staying for the long haul.
So what do you think of Big Data, do you think Netflix used it well? How many of you have tuned in to watch a Netflix Original Series?