How Netflix Is Winning Business

How Netflix Is Winning Business & Netflix Marketing Strategy How Netflix – Win the Game. From DVD rental, to now a $100 Billion (Not Million) Company. Where are the subscribers?

Who doesn’t know Netflix?

Mimin is sure that most of us have subscribed to this one streaming platform.

Are you one of them?

Before Mimin starts asking who sells Netflix, Miminn wants to tell you first that as of last 2021, Netflix made a profit of up to $5.17 billion!

I’m curious, how did you get that way?

How do they manage and nurture their 222 million customers?

How do they manage company data?

Why is it this big? How to?

Turned out, the answer is data science

Netflix uses data science not only to attract new subscribers/users, but also to improve the user experience.

How Netflix Is Winning Business

Thanks to data science, Netflix has data on what each user actually wants to watch before they even know and decide what to watch.

Users are endlessly provided with great viewing options based on their activity.

Netflix also uses a lot business intelligence tools.

Teradata, MicroStrategy, Hadoop, and Hive are some of them. Have you used one of these tools?

Some time ago it was also discussed on Twitter that Netflix also uses Python to do things like:

– Information and data security management

– Analysis of traffic distribution and operational data

– Assist in designing prototype visualization tools

Using BI, they manage and nurture hundreds of millions of users.

Mimin has discussed how business intelligence can improve business performance in the previous thread.

You will get a good picture of how business intelligence can be one of the tools that help data-driven decision making and read success stories from companies that use business intelligence.

However, it doesn’t stop there. Netflix also uses big data and comes up with their algorithm which not only improves the user experience, but also increases profits.

Personalized watch lists are essential to the user experience, and with its algorithm, Netflix does very well in this regard.

Some examples of using the algorithm (not just one) that Netflix does are in:

– Personalized Recommendation Engine

– Personalized Video Ranking (PVR)

– Trending Now Ranker

– Continue Watching Rankers

– Video Similarity Ranker

– Artwork Visual Analysis (AVA)

This personalized recommendation engine curates recommendations and shows movie and series recommendations on the homepage.

Of course, each user has different recommendations based on their activity on Netflix.

How Netflix Is Winning Business

Netflix wants their recommendations to be accurate with what the user wants, according to the taste of each user.

However, along with that Netflix also wants to highlight that Netflix has a lot of collections in its catalog.

Using algorithms, not only do users continue to watch similar recommendations, users also explore “what other series are cool” because Netflix continues to provide fresh and appropriate recommendations.

That’s how Netflix promotes binge-watch!

The use of this series of algorithms allows Netflix to predict which films have the potential to be watched and liked by their market.

This data can also be used to predict what films or series will boom even before the film or series launches.

Artwork Visual Analysis

Using AVA, Netflix can predict the visuals that match each user.

Next step after the title recommendations above, Netflix also optimizes the use of images on thumbnails, banners, and posters in each title.

AVA using computer vision to analyze visual data to generate thumbnails on users’ home pages to complete the recommendations.

AVA scans all videos in their database and determines which thumbnail is the most suitable for each user frame by frame.

How Netflix Is Winning Business

That’s why we often find that the thumbnails on Netflix are different from the posters in cinemas or on the Internet.

In fact, each user can have a different thumbnail for the same movie or series.

Work result AVA This is also used by them for marketing purposes and social media campaigns.

Another finding is that, thanks to their algorithm, Netflix saves approx $1 billion per year!

This algorithm also makes 80% of the content watched on Netflix is ​​the result of the recommendation system.

Plus, what makes Netflix as good and big as it is is the use of data analytics.

Netflix uses analytics to optimize everything from the user experience discussed above to their logistics.

For example, Netflix developed an algorithm to predict the cost of producing a film between one location and another.

They also use analytics to determine the effectiveness of the film’s production and post-production processes and came up with workflows that cut most of the bottlenecks.

Using BI for enterprise data management, plus analytics to make workflows effective, that’s why Netflix can continue to grow.

In summary, these three things made Netflix what it is today:

– Data-driven and business intelligence utilization

– User experience

– Optimized workflows

In short, “Netflix uses data science to the next level for their business.”

That’s how Netflix won the game and became one of the biggest streaming platforms today.

With everything structured and data-driven, becoming one or even the biggest in the world is not impossible.

Because everything must be based on data. Data is the business. Is that right, min?

Yepp really, apart from being amazed by how they built the models. Also amazed by how they maintain the model that has been made in real time, with the data flow every second which is definitely millions or even billions

That’s How Netflix Wins Business.

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