Netflix is one of the world’s largest data-driven companies. The most decision-making
process depends on the company data structure. As such, the company has a well-organized data
structure that enhances effectiveness (Praveena & Bharathi, 2017). In essence, Netflix has made
significant progress in the market. Primarily, this has only been possible through its well-planned
data structure. Incredibly, the company has practical analytic tools, which help provide insight
into various aspects of the company, its members as well as its partners (Günther, Mehrizi,
Huysman & Feldberg, 2017). Incredibly, one of the company’s strategies is to analyze a
considerable amount of data, which allows it to have a vast solution to various problems. This
strategy enables the company to work across different business domains, which in turn will
enable it to expand its business. As such, this paper aims at analyzing the Netflix data structure,
which seems to have a significant impact on the company’s progress.
Studies suggest that approximately 80 percent of Netflix content has resulted from the
recommendations of its system (Varma, 2018). In essence, such recommendations are derived
from various analyses within the company that has helped the company to improve its services
efficiently. Incredibly, the house of cards is one part of the company that has attracted a
significant number of users. The number of company customers has recently increased due to
active management, which is supported by a valid data structure. At present, Netflix has
approximately 148 million subscribers from all over the world. Also, studies show that the
company 51 percent of shareholders in the American streaming industry (Hoerl & Snee, 2017).
Interestingly, this has made the company to amerce a significant amount of profit. The growth
ANALYSIS OF NETFLIX DATA STRUCTURE 2
and progress of the company are closely associated with its content and user experience, which,
in turn, lie the company’s data structure.
Unlike most of the companies, Netflix has a well-organized data structure from which
many decisions are made. As such, the company depends on its data to make most of the
decisions, which in turn affects its progress. More interestingly, the company derives most of its
strategies for its data system. So in as much as the company depends on the user experience to
improve its platform, crucial decisions are often made based on data analysis. For instance, the
company hiked its price in the year 2016, where it lost hundreds of thousands of its users.
Despite this, Netflix still made a lot of profit (Kleppmann, 2017). This followed the company’s
decision to ban the VPNs, which also made it lose a massive number of customers. However, the
company still has been able to achieve growth and experience a significant increase in profit. The
company leveraged vast data to understand exactly what its users want. More interestingly, in the
same year, the company reported a considerable increase in its subscribers from the entire world.
As mentioned earlier, the company believes in the context and the user's experience. As
such, the company invests a lot of money on its content to attract and retain a vast number of its
customers globally. Studies reveal that Netflix committed approximately $15 billion for the
content (Varma, 2018). Also, the company used $2.9 billion for marketing, as this is also another
way that the company can increase its sales (Hoerl & Snee, 2017). Despite this, the company's
most crucial part is developing content ideas, which is one of the reasons why it is outstanding in
the market. Incredibly, the whole of this process depends on the data.
Data analysis in Netflix is a vital aspect of the company’s growth. The company has
various data analysis tools, which ensures accuracy and effectiveness throughout the process
(Krumholz, 2014). The company has a data process software as well as traditional business
intelligence tools, which include; Teradata and Hadoop. Moreover, the company has open-source
solutions, such as Genie and Lipstick, which are used to collect, store, and massive process
amounts of data (Günther, Mehrizi, Huysman, & Feldberg, 2017). The above platforms are used
by the computer to create content and even decide on which content should be promoted to
viewers. More importantly, Netflix uses Amazon S3, which enabled its store and process the
rapidly growing data. Incredibly, this allows the company to minimize data redundancy.
However, in the Hadoop ecosystem, the company uses Pig for algorithm and ETL and Hive for
ad hoc (Kleppmann, 2017). Also, the company has recently created the Genie that enables it to
store a vast amount of data as it scales. In essence, the company's motive to keep and process an
enormous amount of data is it helps it identify all that its users need and use such information to
improve its content.
Notably, the results of this process have always been amazing to the company due to a
massive increase in subscribers in a few years. Incredibly, from the above, the strategy the
company has been able to achieve a high engagement rate to the original content. Study shows
that approximately 90 percent of the Netflix users are currently engaged to the original content
(Günther, Mehrizi, Huysman, & Feldberg, 2017). Mostly, the company’s data approach to its
content seems to be successful that the company renews nearly 93 percent of its series. Notably,
the number is enormous compared to other media platforms such as TV, which have only 35
percent of its shows reviewed (Krumholz, 2014). Also, the introduction of the House of the
Cards in the year 2013, increased the company’s number of subscribers (Hoerl & Snee, 2017).
Studies indicate that the program was such a success that it was one of the most streamed in the
US by then. Interestingly, when the company is at its highest peak, the House of Cards content
had been by 40 countries from all over the world (Varma, 2018). More importantly, the company
ANALYSIS OF NETFLIX DATA STRUCTURE 3
has increased bits of sales due to its proper relationship with its users. Introduction not the House
of cards increased the number of subscribers to 33 million. In return, the company amerced a
significant amount of profit from all its contents.
In conclusion, the data structure is one of the essential aspects of any business that
intends to increase its output. Netflix is one of the companies whose data structure is well
planned and organized to improve their services. As such, most of the company’s decision
depends on its data. Incredibly, the company uses its data to improve its contents, which in turn
allows reaching a vast number of customers. As mentioned earlier, one of the Strategies that has
kept the company going is its content and users' experience. The company ensures that it uses its
data approximately to identify and meet the needs of its customers. Some of the software and
tools used by the company to achieve this include Teradata and Hadoop. Using these tools
enables Netflix to collect, store, and process massive amounts of data, which are essential in
analyzing various contents. Incredibly, the company has been able to achieve a vast number of
users through some of its contents, such as House of Cards. More importantly, Netflix believes in
the data approach in improving its business, and this has always kept the company growing. This
has made Netflix increase its profit in the past few years.
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