Netflix, Inc. (NASDAQ:NFLX) is growing faster than anyone could have imagined. The secret to its success is, in truth, no secret at all. The firm keeps offering its audience content that is well loved and has a wide appeal. How, the next question goes, does the firm keep managing to make successful shows time after time. With its latest hit “The Defenders” the firm is giving us a look inside its process.
Todd Yellin is VP in charge of product. It’s his job to make sure the firm’s streaming platform is as good as it can be. To that end he spends a whole lot of time figuring out what people want to see on their TV. He spoke to Wired on Tuesday and explained a little bit about what goes into the firm’s process.
Netflix is watching you
Every move you make on Netflix is recorded and sent back to the firm’s headquarters for analysts to sift through. That is the uncomfortable truth about modern television. In order to improve its hit to flop ratio, Netflix Inc. (NASDAQ:NFLX) has incorporated a large amount of data science into its product.
According to Yellin, The Defenders is something of an experiment in its own right. The show brings the stars of four separate shows together in a single vehicle. Those shows each have their own appeal and, according to Netflix, each has a distinct audience.
The new Marvel show is going to attempt to find out how many people it can convince to convert from Luke Cage or Jessica Jones. In order to do so, the firm is going to collect as much data as possible.
Your entire viewing history is open to the data scientists, and they’re going to use every inch of it to figure out why you gave The Defenders a go, and why you decided to stick around.
This is important to figure out because Netflix wants you to Watch as many of its original shows as possible. The firm wants you to be addicted to its service in order to show high engagement levels to investors.
Netflix stock keeps growing
While it’s a certainty that the popularity of Netflix, Inc. (NASDAQ:NFLX) is mostly down to its convenience, great pricing and great content, those factors don’t explain the firm’s share price. While it invests in more and more new shows and movies, Wall Street is investing in it. Looking at the price of Netflix stock, there’s a whole lot of growth priced into the firm’s future.
That could be a worry for someone looking to buy the stock today. The firm really needs to deliver on the promises that investors have already priced in.
In recent days, as the market became volatile over worries about the US economy, the firm’s shares have been on a slow slide. Stock has lost a little over 1 percent of its value in the last five days of trading. That’s in line with losses in other growth stocks, however, and nothing to be concerned about just yet.