Have you ever wondered why Netflix is so popular?
There are similar platforms to Netflix, such as Disney+, HBO Max, Amazon Prime, Apple TV, and Hulu, but none of them has global users like Netflix, and some of them aren’t available globally like Netflix.
The company is worth $154.7B on February 2023.
In 2009, Netflix decided that it wanted to build its recommendation system based on data analysis like other tech companies at that time, such as Google, Amazon, YouTube, and many others. So, they asked 480,000 users to rate 17,770 movies, and they got 100,480,507 ratings.
So, they started to analyze the data, make patterns, and understand what the user may watch based on their history and the movies and shows they like and follow. Nowadays, Netflix’s recommendation system analyzes over 30 million daily “plays,” as well as over 4 million subscriber ratings and 3 million searches, allowing them to make successful bets on producing widely-acclaimed hits such as “House of Cards.”
Why Your Business Should Start Using Data Analytics
1- It gives a better understanding of your target audience’s needs and wants.
2- Create customized content and advertisements.
3- Boost your sales.
4- cost reduction.
The Outcomes of Netflix’s Investment in Data Analysis
Netflix saves $1 billion annually thanks to its recommendation system. This recommendation system influences 80% of the watched content on Netflix, according to Inside Big Data. Now, we want you to imagine what you can achieve if you’re a few steps ahead of your competitors. Or imagine that you have a cheat sheet for market reactions and perceptions.
Marketeers has developed its platform based on the same prediction concept; we call it Smart Value™ which will guide you by giving a full view of the market, including the gaps, the opportunities, the performance, and analyzing historic data to predict the reaction of the customers to the different decisions to help make precise decisions for growth.