![]() It results in better customer retention per year. Netflix’s ability to collect and use the data is the reason behind its success. And then after the collection of data, the data is cleaned and a buzz word is implemented, that being the ‘recommendation algorithms’.Īt this point in time, you might have understood the reason behind the success of Netflix’s tremendous ability to collect, process, and use data. Imagine how beautiful that data would look if gathered properly. It keeps track of how many times you search before choosing to watch a show and even what keywords you have used in your search. ![]() Netflix captures screenshots of scenes that viewers watch repeatedly and it categorizes you as per the rating. Do you have a habit of watching your favorite scenes repeatedly? Then Netflix knows that. You will realize the amount of effort and intelligence required of and implemented by Netflix. The work is not yet completed! What are some of the extreme points you can think of after reading the last paragraph? Give it a try. How many metrics will be there in total which Netflix might be using for data collection? Ultimately, it tracks every action taken by the user on Netflix and considers it as a data point. They also take into consideration if you are completing the show or not, how many hours, days, or weeks to complete the episode or a season or a movie. On top of that, Netflix also knows about how and when you pause and resume your shows and movies. To put it simply, if you’re watching any TV show or movie on Netflix, it knows the date, location, and device being used to watch, as well as the time of your watching. If I want to generalize this, data collected by Netflix is mostly about customer interaction on the application or webpage and responsiveness to shows or movies. It's hard to believe but, the profile of a subscriber created by Netflix is much more detailed than the information or preferences provided by the subscriber at the beginning of their Netflix usage. ![]() Diving deeper into it, several data points have been collected and a detailed profile of each subscriber has been generated. According to Netflix’s study, viewer activity depends on personalized recommendations and the results are true for over 75% of subscribers. You should be able to relate if you’re a Netflix user. Just read this line again - it almost feels like a supernatural talent or power. ![]() Netflix uses the collected information, converts them into insights, results, or visualizations, and recommends TV shows and movies as per customers’ preferences and interests. Studying the traits of the data of this many customers would be a tremendous task. Imagine Netflix with its 203 million subscribers. The question looks so simple and straightforward, but only people having the background or experience of working, studying, or playing with data can understand the depth of this question.įor any company or organization, data collection is essential. How Netflix uses data and big data analytics? I came across an informative blog that talked about the top reasons why people choose Netflix. Are you wondering why people choose Netflix? And why you chose it? Netflix has been more successful in identifying the true interest of customers or audiences. This has helped escalate the rate of subscriptions. Netflix has really gone a long way ahead of its competitors because of its more successful TV shows and movies that have garnered attention and a high number of views. This is an excellent milestone for Netflix, as it has crossed the 200 million mark for the first time. And Netflix used it so intelligently that their customer retention rate is extremely impressive and keeps increasing over the years.Ĭan you guess the total subscribers of Netflix? Up until December 2020, Netflix subscribers (paid subscription) amounted to a whopping 203.66 million. Now, this may look like a simple tactic at first glance but do note that this is considered by many as the most powerful tactic used by any media company. The success lies in a secret term that is no secret (but the way it’s used in a certain way is a secret) - customer retention.Ĭustomer retention may be defined as the process of engaging the customers and appealing to them to use the service or buy the product. It is currently renowned as the most valued company/media company in the world and transcends even Disney. Netflix’s current company valuation is $234 billion.
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