MBBA – MANAGEMENT INFORMATION SYSTEM
MS. MAYLING CAPUNO
NETFLIX CASE STUDY
In Partial Fulfillment of the Requirements
for the Degree of
Master in Business Management
Major in Business Administration
Prepared by:
GUESE, JOHN AUGUST VIANNEY D.
2 AUGUST 2020
Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa
Telephone Numbers: +63 43 723 1446 | 980 0041
Website: www.ub.edu.ph
As a netflix subcriber, there are a couple of things that made me keep my
subscription. First and foremost, in comparison to other streaming applications, Netflix
has the least buffing time. It runs smoothly and it is as if it plays through the regular live
channels. Apparently, this is a result of Netflix investing in their own Content Delivery
Network. Their global network called Open Connect enables them to directly and
collaboratively work with the local Internet Service Providers. This has been crucial
since the consumers make up most of the internet traffic. With Open Connect, they
were also able to customize content delivery solutions for Netflix. In effect, Netflix was
able to localize traffic as close as possible to its member and limiting the network and
geographical distances of the videos that must playback. This benenfits both consumers
and ISPs because it made data travel faster.
Second, It plays exactly where I left off. I binge watch a lot and don’t really
remember which episode or season I am at in a certain series. Third it recommends
shows that are similar to what I have have been watching. I remember, the first thing
Netflix asked me to do when I subscribed to it is to choose the top three shows I would
like to watch. Then when I went to their main page, those shows and other similar
shows come up as recommendations. These are obviously results of algorithms they
created through analytics. Netflix Library of movies and shows may be overwhelming.
But with their effective algorithm, shows that are simlar to those I have seen are
strategically placed on reccomended titles which make it easier for me to choose what
to watch next. It is one thing to give the customers what they what, but another to keep
them in their realm by suggesting things that even the customers didn’t know
themselves that they actually want. Investing in analytics saved them a lot of money by
efficiently choosing which shows to produce or retain in their list rather than taking a
risks on creating shows that have no basis or reference of viewership.
In addition, Netflix also utilized Self-Service analytics that made decision making
quicker and more efficient. Reports are done real time even without the need for
interaction between the IT and the executives or whoever needs the information.
Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa
Telephone Numbers: +63 43 723 1446 | 980 0041
Website: www.ub.edu.ph
Before, actionable intelligence is time consuming. There used to be a lot of people in
data gathering, filing, analyzing and others. But Netflix was able to make good use of
self-service analytics which allowed them to manage data themselves for daily work
use, data discovery and decision making. Being a global company, this saved a lot of
time and money for issues may be resolved locally.
Every decision at Netflix, from the color tone used to for covers to attract the
audience, to personalized drip marketing strategies, to upcoming original content to
repertoire of shows and movies, is driven entirely by data insights. With access to such
in-depth data – both from existing customers and from reactions to what competitors are
doing – the Netflix team can ask better questions and make informed decisions, without
the use of old school focus groups and other time-and-effort-heavy forms of testing.
Instead they can rely solely on comprehensive data to inform every decision be it large
or small.
Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa
Telephone Numbers: +63 43 723 1446 | 980 0041
Website: www.ub.edu.ph