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Content helps both acquire and retain customers.
Content Variety Acquires Customers - With every new series, the total value of Netflix's subscription service goes up.
Original Hits Creates a Competitive Advantage - BoJack Horseman, Stranger Things, Orange Is the New Black, and literally hundreds more are unique to Netflix.
Customer Retention - Finally, these hits and overall value gives customers a reason to stay tethered to the platform.
However, in reality, the sheer amount of content on Netflix would be overwhelming for users without personalization capabilities.
Netflix solves this problem with product recommendations, powered by a rich data around each of their titles.
How Netflix Uses Rich Data and Unique Categories to Fuel Product Recommendations
Netflix uses an advanced product recommendation engine to help customers navigate the 7,000+ movies and shows available.
One secret behind their success is using precise categories to group titles into. Although in your account, you'll only see a handful of categories, behind the scenes Netflix is using hundreds.
Netflix invests resources to categorize each movie. In turn, each subscriber is presented with highly relevant offeres every time they log in.
How Netflix Uses Personalization to Tailor Top-Level Categories
In addition to creating specific movie categories, Netflix uses a variety of "top-level" categories.
For most e-Commerce stores, this would be "Top Selling" or "Woman's Fashion". In Netflix's case, top-level categories translate to "Bing-Worthy" and "Trending".