Today, Netflix is one of the most loved streaming apps in the market. With the number of users increasing every second from 115 million users, there is no doubt that this streaming channel has won the hearts of millions of people becoming the kind of streaming world today. Most of you must be thinking about how they have managed to be this successful, and we are here to reveal their secret today.
You can also become a new rising star in the streaming world with our data analytics services.
It has been established that Netflix has taken over the entire Hollywood which indeed is raising huge questions on how?
The answer is simple, the secret is “Big Data”.
As per the Wall Street Journal, Netflix has been using Big Data Analytics to optimize the overall quality and user experience. Through big data analytics, Netflix is targeting users through new offers for shows that will interest them. Not only this but through big data analytics, they also are playing the ground with relevant preferences. All these efforts all together have led to the success of the Netflix streaming platform.
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By now, we have established that Netflix has become one sensational streaming platform of today that has millions of subscribers from all across the world. Now, if we go deep, these million subscribers derive a humongous amount of data that can and has been used by Netflix to grow even more. Although there are many challenges that one faces when it comes to including data analytics in your business, still after reading this, you will understand how important it is.
Right from the prediction of the type of content to recommending the content for the users, Netflix does it all through big data analytics. Netflix started collecting data from the time they were distributing the DVDs which later when they started their streaming service in 2007 shaped into something more. It took them 6 years to gather proper data to analyze find the result-driven data from it and use it. This big data analytics lead to the launch of their first show – “House of Cards” which they estimated to be a success through data analysis, proving how beneficial big data analytics has been for them. This also gives another reason why you should consider adding big data analytics to your business.
Thankfully, there are many experts in the market like us at DataToBiz, who can help you through it.
Netflix also invested a million dollars in the development of the algorithm for data analysis to improve the efficiency and accuracy of the process, helping then increase the retention rate.
Netflix has worked on a combination of factors to reach the current stage of being at the top.
And now, why is Netflix so successful? Because it worked on its core aspects of providing users with content they want to watch and kept the pricing at an affordable range. Moreover, Netflix has such a vast collection of shows, movies, documentaries, etc., that users could keep watching and never worry about running out of content to consume.
Around 80% of the content streamed on Netflix comes from the recommendation engine. The platform has developed a series of algorithms that consider an array of factors to deliver personalized recommendations to every user.
Netflix built new data pipelines, worked on complex datasets, and invested in data engineering, data modeling, heavy data mining, deep-dive analysis, and developing metrics to understand what the users want.
Netflix innovation relies on-
Netflix hasn’t limited the use of big data analytics only to curate content for users. It uses algorithms to estimate and predict how much a new project would cost and find alternate ways to optimize the production and operations. By reducing bottlenecks in daily operations, Netflix could streamline the workflow and make better decisions about the projects.
This is how Netflix used big data and analytics to generate billions and has won 22 Golden Globe awards in 2021 while having 42 total nominations.
With the help of Big data analytics, Netflix knows what you want and what you would like to watch next. Now, this might seem scary but the science behind it really simple. Knowing and understanding the preferences of the users have proven to be the two pillars of success for Netflix. With the help of which they understood the viewing habits of viewers which help the prediction system that is powered by the algorithm designed by the developers.
In short, big data analytics helped Netflix to gather insights which further helped in the optimization of the algorithm and then adjust the algorithms.
In addition to studying the behavior of the users, Netflix also uses tagging features that allow consumers to suggest as well as recommend different movies and series they think a user will enjoy. This feature encourages more views, clicks, and raises engagements. This magic formula took 6 years of Netflix which has paid off really well as it has become the no.1 streaming app today.
Netflix has around 231.6 million paid subscribers around the world in the third quarter of 2021. The maximum of them come from the US, with Canada next in the line. There are around 5 million Netflix subscribers from India (as of Jan 2021).
But why is Netflix a great product? How has it set itself apart from its competitors?
Aggressive data mining has helped Netflix offer customers the exact kind of shows, movies, etc., they prefer to watch. The data is analyzed to sort through the genres, most-watched episodes, most-searched-for shows/ movies, and so on.
Another advantage Netflix has created for itself is the pricing. With a flat fee per month, users have access to unlimited content streamed on the platform. Netflix also provides the first month free for subscribers.
Even though Netflix has regulations such as one screen (for basic subscriptions), two screens (for standard subscriptions), mobile-only plans, etc., these restrictions act as factors to measure customer LTV. Netflix uses this data to analyze and rank their viewers and thus find ways to enhance their user experience.
Who wouldn’t want access to endless content for a minimum price and binge-watch their favorite shows?
Netflix, a giant streaming platform has made it big using big data analytics. Netflix is one of the most prominent examples of how advancements in technology have helped brands like Netflix to grow into becoming famous and successful.
It is not only Netflix that is making use of big data analytics like Amazon. You can also check how Amazon uses big data to grow its sales. So, if you own a business and are not using the magical powers of big data analytics, we are here to help you. All you have to do is contact our experts and figure out the ways you can make use of data analytics.