How Netflix is Winning with Artificial Intelligence & Machine Learning

Netflix continues to dominate the video streaming game. Valued at over $300 billion, the streaming giant has found its way into 62% of U.S. households. A lot goes into holding that top spot against rivals like Amazon Prime Video, Disney+, and Hulu. For Netflix, the secret to success is machine learning and artificial intelligence. AI is a part of nearly everything the video service does. From the user experience, including recommendations, artwork, and streaming quality, to all aspects of producing content, Netflix is winning the streaming game with AI.

Netflix is Using Machine Learning and AI to Improve the User Experience

Netflix has long been known for the personal recommendations of movies and shows for its users. These recommendations help Netflix continue to grow as it keeps customers watching longer and more often. This has been one of their greatest features, and it is thanks to machine learning. Netflix’s “recommendation engine” is based on customer usage data and uses machine learning to turn it into often astonishingly helpful recommendations.

While many users are familiar with the recommendations feature, fewer people know how machine learning impacts the video thumbnails you see on the screen. There are multiple thumbnail images for each movie and show. Machine learning crunches data from the individual subscriber, plus the click rate for other customers to determine which one is most likely to generate a click and view.

The use of AI to improve the user experience doesn’t end there either. To provide the best streaming experience and avoid buffering, Netflix employs machine learning to predict viewing habits. It then uses this information to deliver content to viewers via the appropriate regional video servers.

Netflix is Using Machine Learning and AI to Aid in the Production of New Content

Netflix is taking advantage of the power of artificial intelligence long before new movies and shows make it to your TV. As the company continues to ramp up the production of original content, they use machine learning to choose shooting locations. Most of us don’t think much about everything that goes into selecting sites. But the choice involves financial costs, requirements of the production, permitting, weather, and a long list of other factors. Machine learning makes fast work out of analyzing the data and offering the best possible option.

The use of artificial intelligence by Netflix that people may find most surprising is in the area of choosing new content for production. You might think that the ideas for original movies and shows still come directly from the mind of creative writers and producers. Actually, Netflix is employing artificial intelligence there as well. Machine learning algorithms are being used to analyze user and market data to determine the type of content that will be most successful on the platform.

Let LuxPM Help Your Business Embrace Artificial Intelligence

Are you ready for your own recommendation system based on AI? LuxPM is prepared to help. Our expert AI developers can help you offer an improved customer experience and gain insight into the market, competition, and even your customers. If you are ready to harness the power of AI to gain a competitive advantage for your business, get in touch with us to get started.