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Intelligent Use Of Big Data By Amazon And Netflix To Harness Greater Profits

Updated on December 30, 2019
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John is a highly motivated and skilled writer, extremely passionate writing about various technologies and environmental well-being.

Netflix and Amazon are transforming the entertainment industry with data like never before and has taken the viewership experience by storm by utilizing big data to its optimum use. As per Wall Street Journal survey reports, Amazon/ Netflix and many such big companies use Big Data analytics to optimize the quality of its video streams. Also, they collect data of their subscribers and discover buying patterns/ their behavior by establishing a data analytics model.

Netflix with a company valuation of over $164 billion has toppled Disney’s dominance across the world in the media industry. Today, Netflix is the market leader and their phenomenal rise to the top is all attributed to intelligently applying big data.

Big data is the secret weapon used to build up a “360-degree view” of the customers and then lure them onto products/ content you want them to purchase or watch. The mountain of data ‘big data’ unleashes is actually quite overwhelmingly humongous and informative to not use it for business purpose. From your buying habits, your shipping addresses, to take a guess on your income levels (from your geographical locations), the industry leaders like Amazon and Netflix gathers data on each of its customers when they visit their site.

Big Data-The Game Changer for Internet Streaming Services:

The biggest reason streaming services like Amazon and Netflix have an upper hand over other market players is they all have their own data which they do not share with anybody else in the entertainment industry. Amazon uses data from sourcing ideas whereas Netflix uses data at the initial stage of plot creation and is more focused on the art and creativity part of the scripts and concepts.

On average Netflix accounts for one-third of peak-time internet traffic in the United States of America. Netflix is a great display of an amazing business model combining technological finesse with excellent human creativity. Netflix’s winning strategy has been the quantitative approach, it deploys in providing a world-class viewership experience.

It is a lethal combination of Big Data and analytics techniques that makes Netflix truly the undisputed king of the market. Check the statistical details to believe the unbelievable: Netflix’s 120 million subscribers watch over 140 million hours of video every day on over 450 million different devices. Additionally, it’s been reported that Netflix invested $1 million on improving the accuracy of the recommended algorithms.

Netflix is the pioneer of combining data-driven growth with personalized entertainment experiences for viewers by using the recommendation algorithm to suggest TV shows etc. as per the user’s choices. Whenever a viewer is navigating/ spending time in watching TV shows etc. on Amazon/ Netflix, big data is simultaneously playing its part by collecting user data that informs the recommended algorithm about user activity. That’s how it knows what viewers want to watch. Netflix was primarily a DVD-mailing business, but slowly the group moved to recommendation algorithms and big data analytics model and it changed the whole scenario for internet streaming services. And, we know more than 75% of viewer activity is based on recommendations.

How these companies use data analytics model that creates the difference in ultimate company profits, like Netflix’s solid customer retention rate is 93% as compared to Amazon prime’s 75% and Hulu’s 64%. Netflix collects many more data points than others to create detailed profiling of its 151 million subscribers and implements specific data analytics models to identify their buying patterns, choices and then use the information to recommend movies based on their specific preferences.

All these media giants are flourishing big time, thanks to the successful application of big data.

Following are the big data analytics benefits which are lending greater profits to these live TV streaming services and making them truly a big data company:

  • It provides a great viewership experience by its ability to use the collected data.
  • Smart use of big data and analytics tools in selecting original content.
  • Intelligent use of big data and analytics for custom marketing.
  • Encouraging subscriber’s feedback to increase the engagement rate.

The core motive of big data is to provide businesses insight into quantitative data, which is used to make better-educated decisions to improve user experience.


  • With each passing day, many companies are adopting big data and investing in predictive content programming. This provides them with an informed parameter to make a concrete decision to run their businesses rather than guessing on the customer/ viewer’s habits.
  • Amazon and Netflix’s smart business strategy to use big data exclusively to create a loyal customer base actually turned the tables for them. They have shown ways to many big and small enterprises to make optimum use of data to earn revenues for their respective establishments.
  • Big Data has a big potential to transform businesses of any size to mammoth profit centers.
  • The accuracy of the data collected from these analytics would be the differentiating factor in sustaining the advantages of big data.


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    • profile image

      Kanchan Sharma 

      3 days ago


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      4 weeks ago

      Just the kind of article I was looking for, for my high school project!! Thanks a lot..

    • profile image


      4 weeks ago

      Excellently conceived article!!

    • profile image


      3 months ago

      Nice Insights


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