Week One – e-Business Cases – Netflix

This week covered e-Business Cases, around three particular companies, Google, Amazon, and Netflix.

For Netflix, we looked at the products offered, which are stated at (Ir.netflix.com, 2015) include:

  • Streaming Internet TV for movies and TV series;
  • DVD rental;
  • Original content licensing to TV networks.

(Ir.netflix.com, 2015) states that Netflix’s Business Model is:

Netflix is a global Internet TV network offering movies and TV series commercial-free, with unlimited viewing on any Internet-connected screen for an affordable, no-commitment monthly fee.

Netflix is quite social, with recommendations being at the heart of social activity. (Netflix.com, 2015) notes that social features include connecting to Facebook, and sending recommendations to friends.

(Netflix.com, 2015) states that the information that Netflix collects includes:

  • Information you provide to Netflix to operate the platform, such as your name, and credit card information;
  • Rating information and viewing preferences;
  • Information collected automatically about how you interact with the platform, such as what devices, when, where, and what network speeds;
  • Social networking information if enabled;
  • Demographic information and browsing behaviour where possible.

(Techblog.netflix.com, 2012) highlights some of what recommendations can be based on, including:

  • Household viewing interests, not just individual viewing interests;
  • Context;
  • Title popularity;
  • Evidence;
  • Novelty;
  • Diversity;
  • Freshness.



Ir.netflix.com,. (2015). Netflix : Netflix’s View: Internet TV is replacing linear TV. Retrieved 16 July 2015, from http://ir.netflix.com/long-term-view.cfmpl

Netflix.com,. (2015). Netflix – Watch TV Shows Online, Watch Movies Online. Retrieved 16 July 2015, from https://www.netflix.com/SocialTerms?locale=en-US

Netflix.com,. (2015). Netflix – Watch TV Shows Online, Watch Movies Online. Retrieved 16 July 2015, from https://www.netflix.com/PrivacyPolicy

Techblog.netflix.com,. (2012). The Netflix Tech Blog: Netflix Recommendations: Beyond the 5 stars (Part 1). Retrieved 16 July 2015, from http://techblog.netflix.com/2012/04/netflix-recommendations-beyond-5-stars.html

2 Replies to “Week One – e-Business Cases – Netflix”

  1. Any idea where Netflix could be in 5 years from now? What would they need to do to get there?

  2. Netflix are expanding in two key ways:

    – Geographically
    – Content

    There’s a big part of the world that Netflix doesn’t provide service to. Only recently has Netflix decided to provide service to New Zealand. Of course, expanding geographically means dealing with distribution rights to content, which makes it non-trivial to expand, even though they’re nearly a purely digital business.

    More interestingly is their use of big data to create content. House of Card was created by analysing the viewing behaviour of its subscribers (see http://www.fastcodesign.com/1671893/the-secret-sauce-behind-netflixs-hit-house-of-cards-big-data). More and more Netflix content is becoming a hit with subscribers, as they can continue to understand what content people want to see, and create that content themselves, making it easier to close the feedback loop between what customers want to see, and what content Netflix has to provide.

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