Contemporary applications of big data in business(3)

 Bilal Hussain Malik

13/04/25

                           Contemporary applications of big data in business(3)

                                                                          Netflix

With over 151 million subscribers, Netflix has a robust competitive edge through its sophisticated use of business intelligence and data analysis. The company has fully digitized its interaction with users, systematically collecting massive amounts of data about individual viewing habits, preferences, and engagement.

On this basis, Netflix makes use of advanced analytics and machine learning processes to gain profound insights into user behavior. This enables the platform to offer highly personalized content suggestions based on each unique subscriber's individual tastes. In fact, roughly 80% of what individuals watch on Netflix is directly driven by these personalized recommendations.

What sets Netflix apart from its rivals is its ability to capture and process large sets of data points, allowing it to create rich profiles of its customers. These rich user profiles not only strengthen the recommendation engine but also improve how Netflix speaks to and engages with its audience. This data-driven personalization approach has been the key to Netflix's success. It greatly enhances the user satisfaction and retention, creating an estimated value of $1 billion through the reduced churn. Due to this, Netflix can reduce the spending on traditional advertisement and promotion campaigns. Instead, it relies on the predictive analytics so that it could forecast the future audience for any show, allowing more accurate and effective promotion of the content.

Reference:https://systems-plus.com/8-case-studies-and-real-world-examples-of-how-big-data-has-helped-keep-on-top-of-competition/