Netflix started off as a DVD rental service back in 1996 but now it is the biggest video streaming service in the world and also produce their own original content. However, the company is also extremely adept at using Data Analytics in order to figure out exactly what their users want and that is something that gives them a distinct competitive advantage over their peers.

Big data to the rescue

The sheer level of the data gathering and data analytics operation at Netflix is mindblowing, according to a latest report on Forbes. When the company was still dealing with DVDs, it did not just look to fill their catalogs with new releases but tried to study the renting patterns of their customers in order to give them a better experience.

It brought the same diligence to their streaming service operation but only at a much larger scale.

The company uses data analytics tools to completely understand what their thousands of subscribers actually want and then they tailor their content accordingly. An analyst at the tech marketing firm Amobee says that " Netflix has excelled because of its success at leveraging data into actionable insights." For instance, Netflix might show different trailers to the show House of Cards to different subscribers depending on their viewing history.

Is it a bit creepy?

So, Netflix's data analytics operation not only analyses what a subscriber watches but also a host of other things. For instance, the company analyzes the amount of time he spends on reading the synopsis of a series or the way in which he browses through a range of content before choosing a particular show.

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So, is this all a bit creepy? It is hard to support that premise since the company is not trying to use that information for some third party but actually trying to put that data to better use. The sole purpose of analyzing the copious amounts of data is to ensure that the subscribers have a better experience and get access to shows that are tailored to their preferences. Additionally, it gives Netflix a huge competitive edge over television broadcasters who do not have access to such data.

The data analytics at Netflix is what has made it the most popular streaming service in the world for video content. It is also because of that reason that their competitors have not been able to catch up with them so far. As the company's chief content officer, Ted Sarandos said last year, “Big Data helps us gauge potential audience size better than others,"