CASE OVERVIEW
Netflix, a market leader in the US DVD-rental segment and video streaming segment had gained much of its popularity owing to its personalized recommendations for its customers based on their viewing patterns. With its big data capabilities Netflix had the minutest of details pertaining to the viewing patterns of each and every of its customers (for instance when they presses the play-pause button, when they search for a trailer, when they rate for a show/movie etc.). Netflix got this boost in data mining when it upgraded and shifted its entire technology infrastructure to the cloud. Netflix adopted the Hadoop architecture and from there on its competencies boosted up manifold.
It then ventured into original programming based …show more content…
The other issues which are highlighted in the case are:
1. The excessive outflow of money and resources to get exclusive rights of a show (original programming)
2. The excessive dependence of Netflix on Amazon web services (AWS) even for it’s most critical of operations. If AWS goes down, all of Netflix services go down
3. Increasing concerns of Netflix’s customers over the infringement of their private information.
4. Excessive dependence of companies like Netflix on Big Data for creating original programming gravely affects creativity. The recommendations become so specific for a customer that one might not be able to explore any out-of –the-box content at all.
ALTERNATIVES
1. First …show more content…
The reason being they need original content to maintain their competitive advantage as well as they have a huge repository of data whose potential is immense. Hence if they are able to leverage them both, they may stand a chance against their growing competitors.
Firstly they should convince and tie up with some popular production houses which can give them exclusive rights to all their new shows for atleast the next 5 years. This would secure their next 5 years and the ever increasing amount being spent on original programming would be minimised. Next to increase their customer base they should use their bigdata information to promote their services in a unique way to the audience who don’t know what Netflix is yet. With a steady increase in their subscriber base, they may have an increasing strong customer base which would be hard for any player to build. Hence the giants like Amazon or Microsoft may have huge sums of money but with the original content’s trust and a loyal customer base, Netflix can give them a run for their money atleast in this
Netflix, a market leader in the US DVD-rental segment and video streaming segment had gained much of its popularity owing to its personalized recommendations for its customers based on their viewing patterns. With its big data capabilities Netflix had the minutest of details pertaining to the viewing patterns of each and every of its customers (for instance when they presses the play-pause button, when they search for a trailer, when they rate for a show/movie etc.). Netflix got this boost in data mining when it upgraded and shifted its entire technology infrastructure to the cloud. Netflix adopted the Hadoop architecture and from there on its competencies boosted up manifold.
It then ventured into original programming based …show more content…
The other issues which are highlighted in the case are:
1. The excessive outflow of money and resources to get exclusive rights of a show (original programming)
2. The excessive dependence of Netflix on Amazon web services (AWS) even for it’s most critical of operations. If AWS goes down, all of Netflix services go down
3. Increasing concerns of Netflix’s customers over the infringement of their private information.
4. Excessive dependence of companies like Netflix on Big Data for creating original programming gravely affects creativity. The recommendations become so specific for a customer that one might not be able to explore any out-of –the-box content at all.
ALTERNATIVES
1. First …show more content…
The reason being they need original content to maintain their competitive advantage as well as they have a huge repository of data whose potential is immense. Hence if they are able to leverage them both, they may stand a chance against their growing competitors.
Firstly they should convince and tie up with some popular production houses which can give them exclusive rights to all their new shows for atleast the next 5 years. This would secure their next 5 years and the ever increasing amount being spent on original programming would be minimised. Next to increase their customer base they should use their bigdata information to promote their services in a unique way to the audience who don’t know what Netflix is yet. With a steady increase in their subscriber base, they may have an increasing strong customer base which would be hard for any player to build. Hence the giants like Amazon or Microsoft may have huge sums of money but with the original content’s trust and a loyal customer base, Netflix can give them a run for their money atleast in this