Question

Netflix is unarguably the biggest online platform for streaming movies and TV shows, and it owes its success to Big Data. Because they know their users, their retention rate is 93% which, compared to their main competitors, is a huge number. They are also growing rapidly because of their original movies and TV shows that just show that they actually listen to their consumers.And because of that, this year they were able to compete with traditional giants and win two Golden Globes and two Oscars. And it looks like this is just the beginning!So, how do they use their data to create such a good customer experience?They collect data such as the time during which their subscribers watch the show, if they binge-watched it or it took them some time to finish, did they pause the show and if they resumed it after pausing…And all of this is used to create personalized accounts for each consumer!Their goal is the ultimate personalization and that is clearly shown through their plans for the future which include using AI to create trailers – because why should everybody get the same one? They plan on creating trailers that are fully personalized for their viewers – for example, if a specific user loves romance movies, they are more likely to watch a non-romance movie if the trailer is filled with romantic scenes. And that is just the tip of their plan.Netflix will be able to achieve this through machine learning, and even though machines still can’t understand human emotions, it is something we can expect in the near future. And when it comes to the bottom line – this will greatly reduce the cost and time needed to create the trailer and put Netflix on the right path to achieve their goal of ultimate personalization.(What data does Netflix gather from customers?

How do they use the data collected from customers and how does this benefit the customer?

Answer 1

Netflix gathers a variety of data from its customers to enhance its services and improve user experience. Here are some of the main types of data collected and how they are utilized:

### Types of Data Collected:

1. **Viewing Behavior:**
- Duration of time spent watching shows or movies.
- Whether users binge-watch (watching multiple episodes in one sitting) or take breaks.
- Patterns related to pausing, resuming, and stopping content.

2. **User Interaction:**
- Ratings or likes/dislikes given to titles.
- Search history and browsing patterns.
- The genres or categories of content preferred by users.

3. **Demographic Information:**
- Basic user data such as age, location, and account details.
- Device usage (e.g., TV, smartphone, tablet).

4. **Account Information:**
- Number of profiles created under a single account and the content consumption patterns of each profile.

### How Netflix Uses the Data:

1. **Personalized Recommendations:**
- Netflix uses sophisticated algorithms to analyze viewing habits and preferences, providing tailored content recommendations to each user. This enhances the likelihood of users finding shows and movies they'll enjoy, thereby improving the overall user experience.

2. **Content Creation and Acquisition:**
- Data insights inform Netflix about popular genres, themes, and viewer preferences, helping them decide which original content to produce or acquire. This ensures that the content they create aligns with audience interests, increasing engagement and retention.

3. **User Interface Optimization:**
- By analyzing how users navigate the platform, Netflix can continuously refine its interface. It can determine which features are most engaging and make adjustments to improve usability.

4. **Personalized Marketing:**
- Netflix plans to generate personalized trailers using customer data, showing segments of content that align with individual user preferences. This makes marketing efforts more effective by targeting viewers with content that resonates with their tastes.

### Benefits to the Customer:

1. **Enhanced Discovery:**
- The personalized recommendations help users discover new content that they are likely to enjoy, making the experience feel curated and relevant.

2. **Greater Engagement:**
- Personalized content increases user engagement, as subscribers are more likely to find shows that appeal to them, leading to more time spent on the platform.

3. **Improved User Experience:**
- A tailored experience makes the platform easier and more enjoyable to use, reducing the time spent searching for something to watch.

4. **More Relevant Marketing:**
- Personalized trailers and promotions make marketing feel less intrusive, as they are aligned with user preferences rather than generic ads.

In summary, Netflix effectively leverages data to create a highly personalized and engaging user experience that not only retains viewers but also attracts new subscribers, solidifying its position as a leader in the streaming industry.