Netflix Case Study

Jun Ruan/ Zixuan Zhang/

Vivian Wai Kan Chan/ Sherin
Alex/ Pragya Mishra
Big Data Analytics
• Netflix also “inverted” its data on consumers’ Interests, tastes, and movie watching habits. to examine the
performance of movies, developing a new lens on which content would be best to position in the future.
Data on customer tastes and behaviours will undoubtedly shape media distribution in the future, and
large data-driven digital platforms, like that of Netflix, will show us how new data will likely enable even
more forms of data monetization
• Enabling customer intimacy and customer loyalty
• Capturing long-tail demand through aggregation
• Changing the relationship with content providers (movie houses)
• The lesser-known movies often came to netflix with much lower royalty prices from the movie houses
• Good match between A lesser- known movie and A customer was also good for profits
• Netflix built A proprietary recommendation engine, called cinematch 
• As customers rated more movies, netflix’s cinematch gained more data for its calibration, resulting in
more accurate netflix recommendations. Precision and scale were simultaneously achieved.
Innovations
• Cinnematch
• In light of the partnership with Roku - California-based electronics consumer electronics firm, Netflix allowed
unlimited access to Netflix’s entire library of digital movie and television content to make their movie pool enter the
“living room” space
• Introduce a monthly subscription model and eliminated due dates and all corresponding late fees
• Cinematch: Cinematch algorithm allowed Netflix to make recommendations, and
• Data exchange
• Leverage the data to enable the advertisement promotion more precise
• Netflix altered the pricing model
• Changing the business model of media consumption from timed rental to a subscription format
• Under Netflix’s model, the customer data scale allowed it to find niche movie watchers, which meant that lesser-
watched movies could more easily and inexpensively be matched with interested customers. The digital platform
created by Netflix and the data behind it allowed for predictive models that could identify customers that might best
enjoy a niche movie or a movie whose awareness was otherwise low.
Information governance issues
• Information safety
the world's largest subscription video platform,  got hundreds of millions of users with all
of their private data, payment information
• Digital Piracy: Recording Video and uploading it on Youtube 
• Control over customer information and customer relationships (The threat to the movie
studios was real and the war was on. When a third party can influence your product price
and monitor its value in the marketplace through third-party surveillance, a level of
control has been lost. That is exactly what the movie studios felt)