The data Netflix analyzed to create “House of Cards” is distinguished as Big Data because of its volume, variety, and velocity. Netflix has over 33 million members streaming more than one billion hours of video a month. Netflix obtains large amounts of data from its consumers, even from things you would not expect. Netflix keeps record of not only what videos a customer watches, but also where they are watching, when they are watching, what they are searching, what device they are watching on, if they pause/rewind/fast-forward at certain points, what TV shows they complete, and what ratings they give (Leonard 2013).
This means that Netflix has access to a rapid direct inflow of information on what customers are watching, searching, and preferring at any given time. With Big Data and Data Mining research, they found the average rating of all videos, defined the television shows where viewers were most likely to complete the series, and used data mining to find common feedback/requests on social media sites, emails, and search inquiries. Netflix measured patterns with Data Mining tools to find the most common actors in successful videos, most common popular themes, and in general what the most popular videos had in common. In doing so, Netflix was successfully able to measure consumer demand for a new television series.
Netflix defined three specific factors of a television show that would attract the highest consumer demand. These determining factors were Kevin Spacey acting, David Fincher directing, and political drama genre, which is what they used to create “House of Cards” and why they claim it is such a success (Leonard 2013). Given the success of the show, many companies are beginning to believe that Data Mining can give a comparative advantage by predicting consumer demand correctly. While there concerns with privacy concerning Data Mining, there are plenty of gains to be made with Data Mining. Given this example of the benefits of Data Mining, what is your stance on using Data Mining?
SOURCES
Baron, P., Eskin, G., & Lloyd, C. (1975). Some Conceptual Issues in the Testing of the Economic Theory of Consumer Demand. Advances In Consumer Research, 2(1), 679.
Carr, David. (13 February 2013) Giving Viewers What They Want. The New York Times.
Leonard, Andrew. (2013). How Netflix is turning viewers into puppets. Salon Media Group. Retreived April 13, 2013, from http://www.salon.com/2013/02/01/how_netflix_is_turning_viewers_into_puppets/
For one, its good thing that they are trying to meet customer demands but it's creepy that they watch every single click you make on their website. If its a benefit that will provide better service and content than I'm for it.
ReplyDeleteThanks for your opinion and comment. It is a benefit to have them meet customer demands; however, it costs you your privacy. After reviewing both sides of the argument to Data Mining. I would have to say the negatives far outweigh the positives. Therefore, my opinion is it is creepy, and I'm against it until further regulation comes about. Stay tuned for more posts.
DeleteThis comment has been removed by the author.
DeleteI understand that in order to hopefully provide customers with a TV series that they are going to enjoy and watch they have to do their research and so being able to see everything thing the customer does is helpful for them. But that does seem to be a tad bit over kill for me...I'm not sure why it really matters to them where I would watch a show or if I watch it on my ipad, laptop, or TV.
ReplyDeleteHannah, thank you for your comment. I agree, I am not sure why it matters where you are watching a show (mobile, tv, etc). However, House of Cards, Orange is the New Black, and other Netflix shows have been extremely popular, so if it works who am I to question the method.
DeleteIt seems that the statistical value Netflix receives from their way of data mining has made them successful. House of Cards is a very good show and I would enjoy other shows alike it and I don't mind if Netflix gathers these statistics to help categorize popular TV series.
ReplyDeleteThanks for your comment Neil. I think Netflix's overall business model has contributed to their success. They saw how Blockbuster was displaying all their inventory in a brick and mortar business; thus, they used the internet to display their merchandise to save money. Next, they went from shipping discs to streaming them directly to your television. All of this along with their Data Mining ability has contributed to their success. It is amazing how they have disrupted Blockbuster's complete video rental industry. I am impressed with Netflix's data capabilities at the present time, but at the same time, I am looking forward to see what happens next in this industry.
Delete