Netflix Makes Movies By Numbers

Hey Jessflixers

Internet companies live and die by the amount of data they can collect and then how they use that massive data collection to spot patterns and trends that can be used to find more avenues for profit. While we often look at how Google, Facebook and Amazon do it, since they are the pioneers and kings of this large scale data collection and profiteering.

But they are by no means the only company using this model. Everyone's favourite streaming site Netflix has been using it's over 130 million users strong subscriber base to create a complex entertainment machine that is fascinating to see play out.

Netflix is a simple site, you can browse movies and series, search for them and watch them, that's it. They make it pretty easy and what could they possibly collect on you while you perform these simple tasks? I mean most of what you do is massive, you're just watching a show.

Wrong! Netflix looks at data points such as:

• When you pause, rewind, or fast forward
• What day you watch content (Netflix has found people watch TV shows during the week and movies during the weekend.)
• The date you watch
• What time you watch content
• Where you watch (zip code)
• What device you use to watch (Do you like to use your tablet for TV shows and your Roku for movies? * Do people access the Just for Kids feature more on their iPads, etc.?)
• When you pause and leave content (and if you ever come back)
• The ratings that are given by users (about 4 million per day)
• Searches (about 3 million per day)
• Browsing and scrolling behaviour

Netflix also looks at data within movies. They take various “screenshots” to look at “in the moment” characteristics. Netflix has confirmed they know when the credits start rolling, but there’s far more to it than just that. Some have figured these characteristics may be the volume, colours, and scenery that help Netflix find out what users like.

Curating turns into creating

Where it gets interesting for me is their "curate to create" model. Netflix negotiates with various production houses to get the temporary rights to certain films and shows which they screen on their site. They pick out a back-catalogue of old shows and movies freshly released after their cinema spell. Adding new shows and promoting them to keep users interested in paying their subscription is one part of the business.

They provide curation services for content you might like and recommend it to the various users who they think would enjoy it enough to keep paying them.

But being a curator isn't where the big money is, content creation is and this is where they go to work with data in an amazing way. The active user base allows them to see reactions on various content they've curated. They use this data to pick up trends on content users may like and either create spin-offs or sample pieces of it to create new concepts.

• Ozark - Clearly taking inspiration from breaking bad
• Big Mouth - Takes a few elements of Rick and Morty
• Fractured - Shutter Island

All of which were circulating on the site long before the originals showed their faces.

Data doesn't mean creativity

While it's one thing to spot trends on what people like it doesn't make the creative process any easier and many originals have been misses. I would say more misses than hits but it looks like they are getting better at refining the algorithms they are using and improving with time. While they won't be making the next Oscar-winning movie what they are doing is building up a catalogue of movies and shows that will keep users engaged which is what they want.

All means to an end. At the end of the day, it's just business.

Sources:

• neilpatel.com
• forbes.com
• seleritysas.com

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