How the Company Netflix Uses Analytics to Thrive
By: Carter Spindler
Netflix utilizes analytics in a few different ways, all of which focuses on their customers behavior and watching patterns. The first way they do this is by using a software called Cinematch. This software allows the company to use a recommendation engine that is based solely on what the customer has previously watched and gives them suggestions based on that. They do this by taking past searches, connecting them to customer movie rankings, then evaluating all of these ratings per second and factor in their customer behavior. Netflix also uses analytics to calculate how popular a show will be before it is even produced. They take in all of their customers already viewed shows and base their predictions off of how well liked the show was in the past. Once they have these numbers, they are able to calculate how successful a new show will be based on the amount of views per category of these shows. In doing this, Netflix has been able to dominate the movie and T.V. industry the past ten years. They carefully select a team of mathematicians that are always working to improve the websites analytics. The company even developed a plan to give a $1 million prize for the person who could improve the company's viewing algorithm by the greatest percentage. Clearly, Netflix has this software down to a tee and will continue to remain at the top of the movie industry for many more years.
Student | University of Nebraska-Lincoln
Advertising and Public Relations and Journalism major, Class of 2019
Phone: 612-280-7468
Email: carter.spindler4@gmail.com
LinkedIn: www.linkedin.com/in/carterspindler
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