|Netflix has been using big data to improve their revenue since 2002, helping their statistics rise to the 51 percent market share/ Photo By kasinv via 123RF|
Netflix is at the top of its game right now, churning out multiple successful series on the platform seemingly out of nowhere. Actually, the trick to being able to do that is less psychic than most think. Instead, the streaming platform works with the wonderful technology known as big data, compiling reports on the viewing behavior of its subscribers to tell which shows are viewed the most and how best they can bank on that information.
As reported by Clickz, Netflix has been using big data to improve their revenue since 2002, helping their statistics rise to the 51 percent market share it has now in the American streaming industry. With the force of its 148 million subscribers, Netflix realized that in order to be in sync with their viewers—and therefore don’t lose them to other streaming platforms—they would need actual data to make the connection.
As many know, Netflix is big on big data, and content creation, which explains the large chunk of their money being used more on content creation and the study of their user experience.
Recent records show that Netflix actually commits $15 billion of its budget for content alone, with marketing only a small $2.9 billion. It works, though, because when there was a strong clamor for anime, Netflix was able to observe viewer behaviors in watching these shows and made an effort to include it in the platform.
The incredibly successful “Bandersnatch” was also used by Netflix to experiment with more unconventional ways in which people liked to view their content.
As further reported by Clickz, the data processing software that helps them out in this endeavor are the following: Hadoop, Teradata, and even Lipstick and Genie, two other big data processing software that are equipped with more “open-source solutions.”
All this effort has paid off, so far, and although Netflix admits that their biggest rival in the attention-grabbing industry is none other than the video game Fortnite, their records don’t lie. Big data has worked for Netflix in such a big way that about 90 percent of engagement on the platform is centered on their original content, while the rate in which shows are renewed on the platform sits at 93 percent.