4. 12 Things You Probably Did Not Know
https://www.youtube.com/watch?v=Puv1lS00ho0
5. Past Five Years
2010- Available on iPad, iPhone, iPod, Nintendo Wii
Canada
2011- Latin America and Caribbean
2012- UK, Ireland, and Nordic countries
Wins first Primetime Emmy Engineering Award
2013- Netherlands
Earns 31 primetime Emmy nominations for original
series
2014- Austria, Belgium, France, Germany, Luxembourg,
Switzerland
Wins 7 creative Emmy Awards for House of Cards
and Orange is the New Black
6. Interesting Statistics
● Total number of Netflix subscribers: 57.4 million
● Number of Netflix subscribers in U.S.: 39 million US subscribers
● Number of hours per month that users spend watching Netflix: Over 1 billion hours
● Percentage of Netflix users that binge-watch shows at least every few weeks: 61%
● Amount of storage that Netflix needs: 100 to 150 terabytes per server
8. Netflix Features
● 30-day free trial membership
● English subtitles
● Three plans
o Basic- unlimited streaming $7.99 / month
o Add 1 disc DVD delivery additional $7.99 / month
o Two DVDs at a time costs $11.99 / month
● Licensing deals with CBS, ABC, Fox, NBC, Starz, BBC, Sony
and DreamWorks
● Commercial-free platform
● Compatible with: PC, Xbox 360, PS3, Nintendo Wii,
Internet-ready TV, Roku, Android, Blu-ray player, Nook
or other e-reader tablet, and iOS devices
10. Discussion Question
How do you watch Netflix?
How do you personally feel about the
“Recommended For You” List?
11. The Technology Behind It
● Recommendations
o $150 Million/year, 300 People
o A/B Testing
o No bad shows, only shows with
small audiences
o Streaming from the cloud
● Profiles
o Different people get different
profiles
o Family filtering
12. Streaming Issues
● DVD to Streaming
● Problems Behind Streaming
o TV vs. Movies
o Cost Increases
o Licensing Renewal
13. Tech Management
● Data Organization that Works with Business
o 3 Separate Teams
o Collaboration
● Product Teams vs. Content Buyers
o The right shows for the right people
14. Discussion Question
How do you feel about Netflix losing
out on movie streams and going more
towards television shows?
15. The Qwikster Debacle
• Split costs of DVD-by-mail plans and streaming plans
• Separated two services entirely
• Qwikster → DVD-by-mail plans
• Netflix → Internet streaming plans
• Required users to open two accounts and
pay two separate companies monthly
• Increased costs for consumers
• Before launch, Netflix cancelled Qwikster plans
16. Disruptive Technology?
● 47% of all U.S. households subscribe to
an internet television service
● 49% of households have at least one TV
connected to the internet
● 78% of all Netflix subscribers watch their
videos on a TV
● Number of people who cancelled pay TV
subscriptions who also subscribe to Netflix
rose from 16% in 2010 to 48% in 2014
● 5 million U.S. TV households rely exclusively
on internet TV, but 10% of all TV households
may cancel that service in the next 10 months
17. Discussion Question
Do you think that pay TV will be replaced with
internet TV in the future?
Would you ever consider cancelling your cable
subscription and solely relying on Netflix for
television? Why or why not?
18. SWOT Analysis
Strengths
• Brand Recognition
• Convenience
• Original Content
Weaknesses
• Cost of Content
• DVD Subscribers
• Qwikster Failure
Opportunities
• International Expansion
• Original Content
• Advertising
Threats
• Competition
• Licensing Prices
19. Competitors
● $7.99 per month
● Free 1 week trial
● Up to date show selections
● Mobile, tablet, TV, gaming devices
● Limited movie selection
● $99 per year, approx. $7 per month
● Free 30 day trial
● Free two-day shipping
● Commercial free
● Mobile, tablet, TV, gaming devices
● Decent movie selection
22. Netflix Culture
● Hiring only "A" players
● Logic and common sense work
better than formal policies
● No formal reviews
● Rethink compensation policies
● Clearly define "high performance"
23. Goals for the Future
● 2015, spend over $600M in marketing
to attract people around the world
● 2015, invest over $500M on technology
development to improve service and app
● 2015, over $3B on content for members
● End of 2016, available mostly everywhere
in world
● By 2020, grow to 60-90 million members in
the domestic market based upon trajectory
Hinweis der Redaktion
Use recommendation algorithms that keep track of viewing history, ratings, movies in My List, navigation, and even scrolling activity! Netflix spends more than 150 million dollars on maintaining and improving its recommendation system and employs about 300 people to make sure its completely up to date. Netflix uses A/B testing, which is basically test choices for consumers between 2 options to see if their recommendation engine is working properly. Netflix has even expanded its
Netflix has slowly been moving away from physical DVD and Bluray rentals towards a more internet based streaming website. They already have the highest number of available titles, however…
They are making a big push toward TV shows over streaming movies. Movie production studios are allowing Netflix to stream their movies less and less, since they have no way of containing the number of people that have access to the stream. The production studios don’t want to
People that build algorithms and do data science for the whole business
People that focus solely on algorithms for content discovery
Engineers that scale the algorithms to work for 1,000,000s of people
Walls between the teams are very porous, so it’s easy for them to communicate their progress. Good ideas are shared with all three teams regardless of where they are though up.