Netflix: Leveraging Big data to predict entertainment hits
Avinash V Deshpande
14S611 (BSAL3)
Problem statement
1. How can Netflix reduce its dependence on Amazon web services?
2. How can Netflix create original content without affecting consumer’s security and
privacy?
Alternatives
1. Creating its own infrastructure
2. Leasing different partner for infrastructure other than Amazon web services
3. Maintain status quo
4. Analyzing consumer trend using big data analytics without disclosing consumer names.
5. Telecast the previous shows according to the market demand
Evaluation of alternatives
Alternative 1
Pros:
1. By creating its own infrastructure Netflix will have control on its assets
2. They can avoid the problems of shutting the system
3. They can lease their infrastructure to others of it is extra
Cons:
1. The cost involved in setting up owns infrastructure is very high
2. There may be a problem of underutilization of facility
Alternative 2
Pros
1. Leasing different partner instead of Amazon it may give better service than Amazon
2. They can set rules and regulation prior to agreement
Cons
1. Another vendor may not be capable of this kind of infrastructure
2. The cost and conditions involved in the agreement may be different than existing
contract.
Alternative 3
Pros
1. There is no new investment, so no cost associated with it
Cons
1. Amazon web services failed two times in the peak season
2. Customers may lose confidence in Netflix
Alternative 4
Pros
1. They can analyze trend and segment customers without using their identity
2. Segmentation may lead to better programs
Cons
1. Not as such , cost involved will be more in data analyzing
Alternative 5
Pros
1. No cost is involved
2. No threat of consumer data
Cons
1. Gradually user base may decrease
Alternative selection:
After analyzing all the alternatives it is better for Netflix to lease out other vendor other than
Amazon and create on content based on data analytics. This will help in retaining and increasing
the customer base all over the world.
Action plan:
Search for different vendor’s for cloud based infrastructure service provider and use effective
data analytics for content building.
