THE SUCCESS OF NETFLIX THROUGH BIG DATA

BIG DATA BUSINESSDoes Netflix know what shows we’ll like even before we do?

House of Cards fans…you may not be to blame for your obsession.

NETFLIX’S USE OF BIG DATA

NETFLIX USES AND ANAYLZES THE VIEWING HABITS OF ITS 44 + MILLION SUBSCRIBERS WORLDWIDE.

Spends approximately $3 billion a year on TV and film rights and $300 million on Netflix original shows.

Netflix collects Big Data to understand how its users behave on the site and what their preferences are.

Based on the data collected, Netflix could safely determine that certain ingredients would lead to the phenomenal success of House of Cards

HOUSE OF CARDS

ADS

After dedicating $100 million of budget to acquiring the show, Netflix then turned to Big

Data to promote it. They created 10 different ads

to feature on the site.

For customers who had previously watched “chick flicks”, Netflix pushed Robin Wright and Kate Mara’s strong female characters.

When Kevin Spacey fans logged in to their Netflix accounts, they saw ads that introduced Kevin Spacey’s character.

Eventually, all subscribers were segmented into 10 large groups and each received their own customized House of Cards ad.

TARGET AUDIENCES

CRITICISMWhen Netflix “recommends” content to subscribers, what is stopping them from pushing Netflix Original shows over other programmes?

Some critics suggest that TV and Film industries will lose their creative flair in favour of using Big Data to create hit shows

How invasive is Netflix? It gathers information from events such as pausing, rewinding and fast-forwarding

It knows what day you watched content, your searches, and your browsing and scrolling behaviour

EVERY CLICK YOU TAKE

IS THERE SUCH A THING AS PRIVACY? HOW IS BIG DATA BEING MONITORED AND CONTROLLED?

ROADBUMPS FACING REGULATORS

How do you control the collection, storage and trading of personal data online ?

Especially when these activities and the companies themselves, operate in several countries and across many jurisdictions?

In the UK, the Information Commissioners Office (ICO) will fine those who run a foul of the Data Protection Act (DPA).

The Big Data Guidance document (2014) acknowledged that companies collecting data on consumers must keep all info secure

Data must be “ADEQUATE, RELEVANT, AND NOT EXCESSIVE.”

TARGET’S FAUX PAUS

THE DANGERS OF BIG DATATracking their customers browsing and purchasing habits, Target was able to work out when female customers appeared to be pregnant.

To encourage greater sales, Target would send discounts to expectant mothers as their due dates approached.

One father confronted Target when his daughter was sent discounts on baby items.

The daughter had yet to admit that she was pregnant and had to do so following the situation.

This just goes to reinforce the importance of regulating Big Data.