Technology, Software & SaaS
Netflix – Personalization in Streaming (Deep Cut)
Why Netflix Needed Change
As Netflix expanded worldwide, its library grew into tens of thousands of titles. But abundance became a problem:
Choice overload. Viewers often scrolled for minutes without picking something.
Churn risk. Frustrated subscribers were more likely to cancel.
Generic promotion. The same trailers didn’t resonate across diverse cultures and tastes.
Netflix needed a way to make discovery seamless and personal, so every user felt the catalog was built just for them.
The Birth of Recommendation AI
Netflix built advanced machine learning systems that analyzed behavior at massive scale. These models could:
Learn from what users watched, skipped, or abandoned
Factor in pause/rewind behavior for deeper insight
Generate personalized thumbnails highlighting the aspects most likely to attract a viewer
Continuously refine recommendations as global viewing data evolved
AI turned Netflix’s vast library into an individualized experience.
Convincing the Institution
Skepticism existed. Could algorithms really know taste better than human curation? Netflix built trust by:
Running A/B tests that showed higher engagement with AI-driven personalization
Explaining recommendations transparently (“Because you watched…”)
Expanding AI gradually, starting with movie suggestions before permeating the entire interface
The Results
By the mid-2010s, personalization became Netflix’s signature:
80% of viewing driven by recommendations
Lower churn, as users consistently found content they loved
Global stickiness, with personalization adapting to local tastes
The Road Ahead
Netflix is pushing further:
AI-generated personalized trailers and teasers
Predictive commissioning, where viewing data informs which shows to produce
Cross-platform personalization across games, podcasts, and more
The Road Ahead
Netflix showed that in entertainment, content is essential — but relevance is everything. AI transformed an overwhelming library into a curated, personal catalog, making personalization the company’s true competitive edge.
