Netflix: Improving Your Streaming Experience with Your Data

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Netflix is the undisputed king in the video-on-demand streaming entertainment market. By the end of 2020, it had 203.67 million registered subscribers. These numbers do not include the users that are sharing someone’s else Netflix account. If we were to include them, the number would increase.

Netflix has utterly transformed the way we watch television. It has brought everything right at the tip of our fingers. It has also become a leading force in our daily lives — mixing into everything from mobile devices to our language and culture. With over 4590+ TV shows and 1150+ movies in the Netflix US library, you’ll never run out of movies and TV shows from your favorite genre.

Unfortunately, due to the content licensing issue, Netflix is forced to divide and organize its library accordingly to the region. Therefore, many of the users get deprived of different shows that are not available in their region.

However, the solution to this problem is straightforward. You can simply use a Virtual Private Network. You can either subscribe to a premium VPN service or even use free VPN services for Netflix from anywhere in the world if you don’t want to spend money on a VPN subscription.

With a churn rate between 2% to 3% for the past 2 years (lowest among all the streaming services), one has to question how a service like this continues to keep its customers involved? How do they keep on climbing milestones one after the other and succeed when others fall short?

Today, we will try to discover how they keep improving your streaming experience by using the data they collect from you.

Personalized Recommendations

Netflix uses its user’s data in multiple different ways to better understand each viewer. Their priority is to know what the customer wants and to deliver it to him as soon as possible. There are many ways to achieve this, and keeping track of what show or movie you watched is just a tiny portion of the data they collect.

They collect data on various things such as your searches, the data and time you watched a show/movie, whether that show/movie was paused, re-watched, or skipped, and the device you watched it on.

This data is entered and analyzed through a complex algorithm that personalizes each customer’s viewing suggestions. As 80% of the content streamed on Netflix comes from one of their recommendations, it seems their algorithm is pretty good at what it does.

Trends

While Netflix keeps track of what you are watching, it is also busy to suggest what you should be watching. It offers a trending row at the top of its homepage to let you know what new shows/movies are trending and should be a good watch for you.

This data is not helpful to you only; it also helps Netflix decide which program to renew and drop from the service. Due to the real-time data, they can make better business decisions for themselves and you.

Original Content

Netflix is no longer just a station to stream shows/movies from other streaming service providers. It has become one of the largest original content producers on the planet. Shows such as Fuller House, Orange is the New Black, and Stranger Things are still driving a vast percentage of their overall views.

The data they collect helps them in determining what original content they need to pursue and produce. It tells them about what their audience is looking for and how much they want. The same data gives them an advantage over traditional television networks and allows them to run wild into the new field of digital media with confidence.

Marketing

There’s no surprise that Netflix uses their data in their marketing as well. A very insignificant thing like the cover image of your favorite show is also done based on the data analysis.

A clear example of this can be seen in the form of their show, “Gracie and Frankie.” To promote this show in the US, Netflix put up an image that only included Ms. Fonda’s co-star, Lily Tomlin. As a result, more users clicked on this show when Ms. Fonda wasn’t included in the image.

Different businesses can also apply this lesson by testing different kinds of content, images, and messaging to refine the customer experience continuously.

Generating Revenue

Netflix uses the user’s data to increase their profit; after all, it is a business. To say that they are succeeding at what they do is an understatement. Their algorithm saves them about $1 billion per year in value from customer retention.

This revenue is reinvested into improving and generating more quality content and improving the data algorithm.

Even with so many different options to keep users informed about shows/movies, Netflix is continuing to test, innovate and refine its algorithms to retain its users and provide them the best streaming experience there can be possible.

Let’s not leave everything to Netflix; there are few things that you can do to enhance your Netflix streaming experience yourself. If you are interested, do not hesitate to look into these tips to boost your streaming experience.

It currently seems to be leading the race for global dominance, but other popular streaming services will quickly catch up to it. Services like Amazon, Hulu, and Disney+ are beginning to follow its footsteps and will soon be ready to give Netflix a run for its money.

At a time like these, deciding on the best streaming service for yourself would be no less than inventing the bulb. To help you make the right choice for yourself, we have just the right tools for selecting the best streaming service provider for yourself.

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Naomi Kizhner

Naomi Kizhner

On NaomiKizhner.com, I want to share tips, tricks, and quotes that will hopefully inspire someone who might be struggling. Also, I wish to help others find their true passion in life and cut out any negativity.
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