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NETFLIX Introduction F.R.I.E.N.D.S! Breaking Bad! And the latest House of Cards episodes! Some of the finest TV shows that I’ve adored and enjoyed for many years. Having one centralized place where signing up and paying 8 bucks or so a month for sitcoms and movies from all production houses is just fabulous! That’s Netflix for me. So how popular is Netflix? Netflix accounted for 34.2% of all downstream usage during primetime hours, up from 31.6% in the second half of 2013, according to reports. That means almost a third of North America was watching some TV series or movie on Netflix between 7-11pm! Business Model and Strategy Netflix is the world’s leading Internet television network with more than 48 million streaming members in…show more content…
The Data Factor On average, Netflix processes more than 2.1 billion reads and 4.3 billion writes per day. Wow! So where are all these database writes coming from? Once a customer subscribes, Netflix captures every detail of the member in great depth. Initially, members are asked to select their top 10 choices from a list of most popular TV shows and movies on Netflix. This gives Netflix the initial data they run in their recommendations algorithm ‘Cinematch’. From then on, all the user data including the titles they play, what titles are played before and after, why they abandon after five minutes of viewing, and where they pause or rewind or fast forward a movie or series, is captured. This data is used extensively to understand the user behavior. Also, early on, Netflix hired people to specially watch movies and tag them with metadata and cataloged loads of different movie attributes like genre, acting, rating etc. Also their mental state at the point of watching the movies was noted. This along with millions of users behavior is then used as a feed for Cinematch and this helps create a near perfect customer profile. This significantly increases customers’ willingness to pay for the service as they have a wider choice and easy use. This data also helps Netflix understand which movies and TV series they should invest in and acquire based on

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