Question

In 300 words or more answer the following:

How does the company Netflix utilize the different aspects of Information Technology?

Answer 1

Netflix uses Information Technology at every stage of its operations.

They use data analytics to make informed decisions regarding the type of shows that are recommended to every individual user of their service. This personalized recommendation motivates the users to watch more content as all the potential shows and themes which they might like are bundled up into one.

Netflix uses user data from their own databases and also external data from various other sources to make decisions regarding the content that they need to invest in. Netflix creates their own television series and movies for which they might need to get the rights from the respective intellectual property owners. These are big budget decisions that use the power of data analysis to predict the cost per benefit ratio. Thus, Netflix is able to produce content that they know a large section of their users will like and thus subscribe to their on-demand video streaming platform. Many Netflix original series like House of Cards, Orange is the new black, The crown, etc were produced using this strategy. Using this data-driven strategy, the success rates of the shows that are produced by Netflix are almost double that of the market standards.

Netflix not only keeps a track of what kind of TV shows, films and documentaries that their users watch, but also when, where and for how long do they watch it. All this seemingly trivial data helps them in generating patterns and trends among their users that help them in making plans to keep their user base intact. This is the reason why Netflix provides a one-month free subscription to customers to try their service so that they can monitor their content consumption pattern. On one hand, people get hooked on the service on account of the vast content that is available and on the other hand, Netflix gets to know the video watching habits of the general population through information technology.