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How Netflix Uses Big Data to Drive Success

Netflix has over 100 million subscribers and with that comes a wealth of data they can analyze to improve the user experience. Big data has helped Netflix massively in their mission to become the king of stream.

Big data helps Netflix decide which programs will be of interest to you and the recommendation system actually influences 80% of the content we watch on Netflix. The company even gave away a $1 million prize in 2009 to the group who came up with the best algorithm for predicting how customers would like a movie based on previous ratings. The algorithms help Netflix save $1 billion a year in value from customer retention.

Our friends over at FrameYourTV developed the compelling infographic below, “How Netflix Uses Big Data to Drive Success,” that highlights Netflix’s use of big data, specifically interesting statistics, how Netflix gathers big data, and how Netflix uses big data.

 

 

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Comments

  1. So, I read an interesting article over the summer that is in somewhat of a contradiction to Netflix’s position over the last few years about how they are leveraging “big data”. Now I’m not sure if this quote from Ted Sarandos is Netflix’s actual position on data/analytics or if this is just their “public message” crafted by a publicist. I was wondering if this switch came after some backlash from their artists/producers/writers/etc… when the Netflix was heavily promoting their data science position? I could see how a writer (who presumably didn’t have a strong grasp on data science/analytics) might be put off by a company who tells them that they have to create some kind of show because of an algorithm and/or that the algorithm would be used to evaluate their show’s “worthiness”. Or perhaps this really is their new position and they are becoming less data driven?? Not sure, but I thought it was very interesting.

    Quote from article: “Sarandos and Holland tell me, again, that while data is a tool for them, their various projection models and cost analyses don’t dictate their decisions. “It’s 70 percent gut and 30 percent data,” Sarandos says.”

    Article: http://www.vulture.com/2018/06/how-netflix-swallowed-tv-industry.html

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