Netflix is an American company, a supplier of films and TV series based on streaming media. Founded in 1997. The headquarters is located in Los Gatos, California. The firm has more than 40 million customers in 41 countries (2013)
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Netflix originally engaged to rent movies to a DVD-ROM, using the business model DVD by mail only in the US. This business model works as long as not "blow up" online video market. Therefore, Hastings (CEO) decided to invest heavily in streaming video.
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Unlike traditional providers of broadcasting and cable television, company Netflix offers its subscribers unlimited access to premium-rate content without advertising. Netflix works on the basis of the reduced cost base - online streaming is usually cheaper than other delivery models, and the company usually offers Netflix access to new content with a delay, which allows it to rely on the monthly fee without the need to generate revenue from advertising. Today Netflix acquires original content for its streaming subscriber service delivery, and the first material has become the TV series "House of Cards".
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The popularity of the company's services is largely due to their availability. Netflix is suitable to work with a wide range of devices from Smart TV and Android to Mac OS and Xbox 360. In addition, after the registration of the clients have the opportunity to use the services of the company for a month. Since 2013, the quality of movies and TV shows from Netflix rose to super HD. And on American soil can view video even in 3D.
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Having joined the area of streaming media, the company earns more by selling video on demand, but does not leave and selling by mail, with about seven million such orders from customers. In addition to distributing video on demand, the company started to produce its own TV series, to which access is granted only to customers Netflix.
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About 75% of what people watch comes from the site's recommendations. Recommendations are based on what you watch and how you rate it.
Thus recommender system knows that after a hard Monday, came home from work, you will hardly look at the film Hachiko similarity or Titanic. Therefore, the algorithm by a factor of time produces relevant results - something fun, relaxing (in this situation).
Recommender system knows that after a hard Monday, came home from work, you will hardly look at the film Hachiko similarity or Titanic. Therefore, the algorithm by a factor of time produces relevant results - something fun, relaxing (in this situation).
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Many algorithms — and an even larger set of variations of those algorithms — exist for recommendation engines. Some that have been used successfully include:
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Generally, Data mining Process consists of the next part:
- Data input
- Preprocessing
- Analysis
- Validation
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Netflix uses a data collected to increase the number of subscribers. The study of information about users helped us completely reborn and occupy an important place in the market where few manage to earn.
Recommendation system works In the Netflix, reminiscent of the one that uses the online store Amazon. Since Netflix doesn't only sell the content, but also provides its view, it was possible to collect detailed data that certain categories of users may enjoy. Netflix can track even such details as the viewing of certain genres at a certain time and certain devices. For example, it may notice that love comedy go well on Saturday evening , and user commonly use tablets to view the content in the morning, that was mentioned before.
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These mechanisms allow Netflix to attract more and more new subscribers and keep them: according to recent data, the percentage of people who leave doesn't exceed 3.5-4% per month. We also know that up to 75% service bring it to display personalized recommendations. Netflix introduced the possibility of the plant for several profiles in one account: everyone knows that the family no one ever buys a few subscriptions, but it allows you to separate one user statistics from other statistics - and, again, to give a more accurate recommendations.
Next, more important decisions are based on "big data”. In 2013, Netflix began airing its own show - political drama House of Cards. On the basis of the user data has been made not only the choice of the genre, but also a director (he was David Fincher). A little later started thriller Hemlock Grove, tragicomedy Orange Is The New Black and continuation of the famous series Arrested Development. And every time - success and extending until the next season.
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Sources to get Data: Netflix Data mining helps about 75% of all users to select films and series. The service uses the nest instruments to collect proper and useful DATA, which then may be used to improve the quality of service in whole.
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Threats:
- video on demand market will destroy traditional DVD movies market
- problems with piracy (especially in developing countries)
- model of the distribution of profits in video on demand is 60/40 in favor of the studio, while the usual rent - 70/30 in favor implementer
Opportunities:
- Constantly decreasing prices for postage costs
- Growing geography distribution
- The emergence of new media media (consoles, tablets, augmented reality glasses, etc.)
- The opportunity to provide media to everyone, anywhere and anytime – fantastic growth explosion – ubiquity and globalization as key words.
