How Does Netflix Use of Big Data Affect Stakeholders? Posted on 04/09/2015 by Henrietta Hedberg
What is Netflix use of big data? Big data is one of the most amazing tools to use as an entrepreneur, or even if you just want to analyse your market. Everyones daily interactions with the internet, gather big data. There are a great deal of benefits in identifying who your client is, and what your client wants. Thegathering and analysing of big data is a win-win situation, businesses get paid and clients get a product or service ore to their liking.
Netflix Use Of Big Data The Netflix use big data to vary its pricing through looking at how much customers have purchased in the past or by categories. It also suggests things to watch, taking each consumers big data through an algorithm. Netflix also uses big data when deciding which shows to sponsor. In cable networks for a tv show to be aired, the network need a pilot. The purpose of the pilot is to see if it is a viable tv show. It is supposed to set the tonefor the series. In Netflix case, they don’t need pilots. They rely on big data to tell them whether or not a tv show will do well. For “House of Cards“, it looked at David Fincher (director) data. He directed “Fight Club” and “The Social Network”. Analysing big data in this case showed that the films he directed were successful. The data generated by Netflix showed that a large audience would enjoy a new political drama, therefore a pilot would be a waste of time and money.
Is Everything Really Based On Big Data? Tim Wu of the New York Times questioned Ted Sarandos, the chief content officer of Netflix on whether the human judgment role plays a greater part behind the decision making of what shows are chosen to air on netflix. Sarandon claims that his decisions were “70 percent data, and 30 percent judgment” but that the judgment had to come before the data. It can be assumed that this means that Netflix use of big data is guided by judgment.
Big Data Flaws
Even though Netflix achieves great results through their algorithms, not everyone benefits from it. A few scandals involving big data are, the US monitored Angela Merkel, and the exposure of celebrities iCloud pictures. An important aspect of big data is to analyse the right data, cause and correlation can sometimes be flawed in big data.
Stakeholders Are Happy Netflix has 50 million subscribers around the world, and uses big data to optimise the viewers value on Netflix. Does it really matter if Netflix uses only big data? Their use of big data so far, appears to affect its stakeholders very well. Certainly, the shareholders, customers, directors and actors must be happy.
Category Stakeholder Engagement /
TITLE: How Does Netflix Use of Big Data Affect Stakeholders?
FOCUS KEYWORDS: netflix use of big data
DESCRIPTION: Netflix use of big data is a questioned topic. It is said that almost all of Netflix choices are based on big data, but what about human judgment?
TAGS: analysing, big data, big data flaws, David Fincher,drama, House of Cards, judgment, Netflix, networks, new york times, pilot, series,Stakeholder, Stakeholder Engagement, Ted Sarandos, Tim Wu, tv show, engagement strategy, engage stakeholders, stakeholders engagement strategy