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Netflix even has screenshots of scenes people might have viewed repeatedly, the rating content is given, the number of searches and what is searched for.
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For example, Netflix knows the time and date a user watched a show, the device used, if the show was paused, does the viewer resume watching after pausing? Do people finish an entire TV show or not, how long does it take for a user to finish a show and so on. Most significantly, Netflix collects customer interaction and response data to a TV show. The profile is far more detailed than the personas created through conventional marketing. Netflix collects several data points to create a detailed profile on its subscribers. Then, using that information to recommend movies and TV shows based on their subscribers’ preferences.Īccording to Netflix, over 75% of viewer activity is based off personalised recommendations. So, how does Netflix use data analytics? By collecting data from their 151 million subscribers, and implementing data analytics models to discover customer behaviour and buying patterns. What is the secret to their success? Big data and analytics. A contrast to cable television where there is only a 35% chance of a show being renewed after the first season. In 2017, 93% of original TV shows were renewed. Netflix has also been more successful in identifying what their audience wants. Netflix has flown ahead of its competitors because it also makes more successful TV shows and movies, hits like ‘House of Cards’, ‘Orange Is The New Black’, and ‘Birdbox’ have garnered a lot of attention and high viewership, driving up the rate of subscriptions.
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However, it’s not just their ability to retain most of their 151 million subscribers that have made them successful. Their success can be attributed to their impressive customer retention rate, which is 93% compared to Hulu’s 64% and Amazon Prime’s 75%. With a company valuation of over $164 billion, Netflix has surpassed Disney as the most valued media company in the world. Netflix is successful thanks to big data and analytics. How Netflix used big data and analytics to generate billions