How Data Science is Boosting Netflix

https://towardsdatascience.com/how-data-science-is-boosting-netflix-785a1cba7e45

How Data Science is Boosting Netflix


Netflix has flown ahead of its competitors because it also makes more successful TV shows and movies, hits like ‘House of Cards’, ‘Orange Is The New Black’, and ‘Birdbox’ have garnered a lot of attention and high viewership, driving up the rate of subscriptions. Netflix has also been more successful in identifying what their audience wants.

In 2017, 93% of original TV shows were renewed. A contrast to cable television where there is only a 35% chance of a show being renewed after the first season. What is the secret to their success? Big data and analytics.

According to Netflix, over 75% of viewer activity is based off personalised recommendations. Netflix collects several data points to create a detailed profile on its subscribers. The profile is far more detailed than the personas created through conventional marketing.

Most significantly, Netflix collects customer interaction and response data to a TV show. For example, Netflix knows the time and date a user watched a show, the device used, if the show was paused, does the viewer resume watching after pausing? Do people finish an entire TV show or not, how long does it take for a user to finish a show and so on.

Netflix even has screenshots of scenes people might have viewed repeatedly, the rating content is given, the number of searches and what is searched for. With this data, Netflix can create a detailed profile on its users. To collect all this data and harness it into meaningful information, Netflix requires data analytics. For example, Netflix uses what is known as the recommendation algorithm to suggest TV shows and movies based on user’s preferences.

Netflix’s ability to collect and use the data is the reason behind their success. According to Netflix, they earn over a billion in customer retention because the recommendation system accounts for over 80% of the content streamed on the platform. Netflix also uses its big data and analytics tools to decide if they want to greenlight original content. To an outsider, it might look like Netflix is throwing their cash at whatever they can get, but in reality, they greenlight original content based on several touch points derived from their user base.

Comments

  1. SafooJune 7, 2020 at 11:24 PM

    This comment has been removed by the author.

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  2. henryJune 20, 2020 at 12:32 AM

    This is an interesting article that I also desire to know why netflix can be stand out in intense competition. As a netflix user, they surely produce lots of original series which effectively attract audiences, compare to traditional TV, you can watch it through mobile phone or others 3C products, it means more convenience and flexible. Moreover, it support high-definition and play offline function. Netflix knows what the audience really want.

    Through data analytic and collect, they control the subscribers using habits, recommend the preferences on their own main page. That's the reason why they know what their subscribers thinking because recommendation system and different types of series which provide more choices.

    ReplyDelete
  3. SafooJune 26, 2020 at 11:46 AM

    So Netflix has did a great job on ‘House of Cards’, ‘Orange Is The New Black’, and ‘Birdbox’ have garnered a lot of attention and high viewership, and that also why Netflix can lead ahead of other competitors, Netflix collects several data points to create a detailed profile on its subscribers, like this blog said. The profile is far more detailed than the personas created through conventional marketing. So I think Netflix’s ability to collect and use data is the reason for its success. And Netflix has 130 million worldwide streaming subscribers. Having this large user base allows Netflix to gather a tremendous amount of data. With this data, Netflix can make better decisions and ultimately make users happier with their service.

    ReplyDelete

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