Artificial Intelligence in Practice

24Netflix: Using Artificial Intelligence To Give Us A Better TV Experience

Netflix evolved from a DVD-by-mail rental company to become a subscription-based streaming video-on-demand service with 130 million subscribers worldwide.¹

Netflix doesn't (yet) show advertising on its platform, but generates revenue from the subscription fees its customers pay. The driving force behind its sustainability is that customers feel they are getting good value for money for their monthly fee.

To ensure this, Netflix's TV and movie output is geared towards the concept of “binge watching” – essentially keeping customers glued to their TV sets for extended periods of time. The theory (which seems to be working out) being that this will make them feel their subscription fee is a worthwhile investment.

What Problem Is Artificial Intelligence Helping To Solve?

Consumers aren't exactly short of entertainment options these days. Between streaming movie services, the internet, video games and traditional broadcast TV, there are thousands of channels and services vying for our attention as we sit glued to our sofas during down-time.

In the “old days”, scheduling was seen as a precise science, and TV networks carefully selected what programs would run at what times to fit in with our lives and earn our loyalty.

For example, scheduling news bulletins in the early evening when we return from work, followed by light entertainment as we relax in the evenings and a late-night movie before bedtime.

With ...