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The Real Reason You Can't Stop Watching Netflix
AI is the reason you are glued to your screens
Apple, Peacock, CBS, Hulu, Disney+.
We all know Netflix is the real boss in the streaming media arena.
But, this gangster is heavily dependent on a godfather to run its business.
That godfather is what we call – Artificial Intelligence.
Read on to find out more about the dynamics of this gangster-godfather relationship.
In today’s issue, you’ll learn:
📺 Netflix's Unbeatable 2.3% Churn
🤖 The AI 'godfather' behind Netflix's streaming empire
🤫 6 ways Netflix uses AI to keep you binge-watching
🦾 Quick AI tips for product development
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Netflix by the Numbers
2.3 to 2.4%
That's the churn rate of Netflix, which has 247.15 million active members.
It's the lowest in the industry!
Thanks to AI, they have left others in the dust when it comes to product development.
Remarkably, 80% of stream time is achieved through its AI-powered recommender system.
Let’s break down Netflix’s AI strategy:
1. Personalized Content Recommendations
Netflix's personalized recommendation system is the backbone of its success.
By using collaborative filtering algorithms:
The system analyzes user viewing history and ratings.
Identifies similar users and suggests highly relevant content.
For example, if you enjoyed watching "Stranger Things," the AI might recommend "Dark" or "Black Mirror" based on your preferences and what similar users have enjoyed.
This ensures each user receives a tailored viewing experience, increasing engagement and satisfaction.
2. Auto-generated Thumbnails
Netflix's AI selects personalized thumbnails for each user based on their viewing preferences.
AI analyzes user behavior
Choose the most attractive thumbnails
Captures interest and encourages clicks.
For instance, if you frequently watch romantic comedies, the AI might select a thumbnail featuring the lead couple in a romantic scene for a movie like "To All the Boys I've Loved Before."
This seemingly simple feature has a significant impact on user engagement and content discovery.