How Netflix Uses Business Intelligence & Why You Should Too

In today’s digital landscape, Business Intelligence plays a crucial role in driving success for companies. The ability to gather and analyze data provides businesses with valuable insights to improve their operations, decision-making processes, and ultimately, revenue. However, one key aspect of Business Intelligence that is often overlooked is market and competitive intelligence. In this blog, we will explore how Netflix uses business intelligence. You will also learn how it leverages market and competitive intelligence to drive its Business Intelligence success. Lastly, we’ll touch upon why it’s essential for businesses to incorporate these strategies into their own Business Intelligence plans.

Netflix’s journey in a snapshot

Netflix began its journey in 1997 as a DVD rental service. Initially, users could rent DVDs online and receive them in the mail. This allowed customers to avoid the hassle of going to a physical store and provided a convenient way to watch movies at home. Over time, Netflix became popular due to its subscription-based model and low prices.

As technology advanced, Netflix recognized the potential of streaming video content. In 2007, the company launched its streaming service, allowing users to stream movies and TV shows directly to their devices. This move proved to be a game-changer for the company, as it enabled Netflix to expand its reach and offer a wider range of content to its customers.

In the following years, Netflix invested heavily in original content, recognizing the importance of offering exclusive and unique content to attract and retain subscribers. This move has been highly successful, with popular shows such as Stranger Things and The Crown becoming household names.

As of Q1 2023, Netflix has over 214 million subscribers worldwide, making it the leading streaming service in the world. The company’s revenue has been steadily increasing, reaching a total of $7.16 billion in Q1 2023. Additionally, Netflix has continued to invest in original content, with plans to release over 70 original movies in 2023. The company has also expanded its global reach, with a strong presence in over 190 countries. Overall, Netflix’s statistics demonstrate its position as a dominant player in the streaming industry, and its continued growth and investment in content indicate a promising future for the company.

How Netflix Uses Business Intelligence: Netflix’s Market and Competitive Intelligence Strategies

As a streaming giant, Netflix has leveraged market and competitive intelligence to become one of the most dominant players in the industry. Here are some ways in which Netflix utilizes these strategies:

Understanding Viewer Behavior and Preferences

Netflix uses Business Intelligence tools to analyze viewer data and gain insights into their behavior and preferences. By understanding what content viewers watch, when they watch it, and for how long, Netflix can provide personalized recommendations, improving the user experience.

For example, Netflix’s recommendation algorithm analyzes a user’s viewing history, searches, and ratings to suggest movies and TV shows that are similar in genre, style, or story. This has resulted in a 75% success rate of getting a viewer to watch a recommended title.

Enhancing Content Strategy: How Netflix Uses Business Intelligence to Show Subscribers What They Want

Netflix uses competitive intelligence to analyze its competitors’ content and identify trends in the market. This allows Netflix to create data-driven content that appeals to viewers and stay ahead of the competition. Additionally, Netflix uses market intelligence to optimize content distribution by analyzing viewer demographics, preferences, and behavior.

how netflix uses business intelligence to enhance content strategy

For example, after analyzing the data, Netflix realized that reality TV shows were gaining popularity among viewers, especially in the unscripted category. This led Netflix to launch “The Circle,” “Love is Blind,” and “Too Hot to Handle,” which became some of the most popular shows on the platform.

Read more: Unleashing Your Competitive Edge: The Art of Benchmarking Against Competitors

Gaining Operational Efficiency with Market Intelligence

Netflix also uses market intelligence to manage resources and minimize downtime. By analyzing market trends and understanding viewer behavior, Netflix can predict demand and allocate resources accordingly. Additionally, by monitoring industry trends and identifying potential threats, Netflix can proactively mitigate any issues that may arise.

For example, during the COVID-19 pandemic, Netflix anticipated an increase in demand for its services as people were stuck at home. As a result, Netflix took proactive measures to reduce streaming quality to reduce the strain on the internet and avoid service outages.

Gaining the Edge with Competitive Intelligence: How Netflix Uses Business Intelligence to Stay Ahead

As one of the biggest players in the entertainment industry, Netflix faces fierce competition from various companies, including Disney. Disney, known for its iconic movies and characters, has made a splash in the streaming world with the launch of Disney+ in 2019.

To stay ahead of the competition, Netflix has incorporated competitive intelligence into its Business Intelligence strategy. By analyzing Disney’s moves in the market, Netflix can adjust its own strategies to stay ahead of the game.

One example of this is Netflix’s focus on original content. In recent years, Disney has pulled its content from Netflix to focus on its own streaming service. In response, Netflix has increased its investment in original programming. By doing so, Netflix is not only able to differentiate itself from Disney, but it can also offer content that cannot be found on any other platform.

How Netflix Uses Business Intelligence: The Technology Behind Netflix’s Market and Competitive Intelligence

Netflix’s Business Intelligence success is also attributed to its sophisticated technology stack. Here are some of the key technologies behind how Netflix uses business intelligence:

Netflix’s Data Stack for Business Intelligence

Netflix’s data stack is built on cloud-based technologies such as Amazon Web Services, allowing them to store and process large amounts of data efficiently.

Utilization of Big Data and Machine Learning in Competitive Intelligence

Netflix uses Big Data and Machine Learning to analyze vast amounts of data quickly and efficiently. This allows them to identify patterns, trends, and insights that would be impossible to detect manually.

For example, Netflix’s Machine Learning algorithms help analyze viewers’ behavior to make personalized recommendations, reducing churn and improving user engagement.

The Role of Data Scientists in Market Intelligence

Netflix employs data scientists who are responsible for analyzing data, identifying patterns, and creating models that drive Business Intelligence success. These data scientists work closely with cross-functional teams to ensure that insights are actionable and contribute to Netflix’s overall business strategy.

Why Businesses Should Incorporate Market and Competitive Intelligence into Their Business Intelligence Strategy

Now that we have explored how Netflix utilizes market and competitive intelligence to drive Business Intelligence success, let’s examine why it’s essential for businesses of all sizes to incorporate these strategies into their own Business Intelligence plans.

  • Improved Decision Making

Businesses today are inundated with data, which can be overwhelming without the proper tools and strategies in place. By utilizing market and competitive intelligence, businesses can make data-driven decisions that are based on real-world insights. This allows businesses to avoid guesswork and minimize the risk of making wrong decisions that can impact the bottom line.

learn how netflix uses business intelligence and why you should too for better decision making

For example, if a business is considering expanding into a new market, it can analyze data on consumer behavior, industry trends, and competitor activity to make an informed decision on whether to move forward with the expansion. This can help avoid costly mistakes and maximize the chances of success.

  • Gain a Competitive Edge

By analyzing competitor behavior and industry trends, businesses can gain a competitive edge. This information can help businesses identify areas of opportunity and optimize their operations, products, and services to stay ahead of the competition.

For example, if a business is in the retail industry, it can use market and competitive intelligence to analyze its competitors’ pricing strategies, product offerings, and customer engagement techniques. Based on this analysis, the business can adjust its own strategies to better compete in the market.

Read more: 5 Ways Competitive Intelligence Helps You Stay Ahead of Your Competitors

  • Enhanced Customer Experience

Market and competitive intelligence can help businesses improve the customer experience by providing personalized recommendations, identifying pain points, and addressing customer needs.

For example, a business can analyze customer feedback to identify common complaints or issues that customers face when interacting with their products or services. Based on this analysis, the business can make changes to improve the customer experience and retain customers.

  • Increased Revenue

By incorporating market and competitive intelligence into Business Intelligence strategy, businesses can increase revenue by optimizing operations, improving products and services, and identifying new areas of opportunity.

For example, a business can use market and competitive intelligence to analyze customer demand for a particular product or service. Based on this analysis, the business can adjust its production or service delivery to meet customer needs and increase revenue.

Want to know how market and competitive intelligence can help your firm?
Contact us for a free discovery call


    Netflix’s success in the entertainment industry can be attributed to its Business Intelligence strategy, which incorporates market and competitive intelligence to gain insights into customer behavior, industry trends, and competitor activity. By utilizing these strategies, Netflix has been able to make data-driven decisions, optimize its operations, and provide personalized recommendations to enhance the customer experience.

    Businesses of all sizes should take note of the importance of market and competitive intelligence in Business Intelligence strategy. By utilizing these strategies, businesses can improve decision-making, gain a competitive edge, enhance the customer experience, and ultimately increase revenue.

    In today’s digital landscape, Business Intelligence is essential for driving success. However, incorporating market and competitive intelligence into Business Intelligence plans is equally important. So, start incorporating these strategies into your own Business Intelligence plans today, and stream ahead of the competition.



    The facts mentioned throughout this blog are based on research conducted through various reputable sources such as industry publications, academic articles, and credible news sources. Any specific examples cited are either publicly available or have been previously reported by reputable sources. The insights and conclusions drawn in this blog are based on a combination of these sources and the expertise of the writer. They do not in any way represent the brand GreyRadius. The author shall not be held responsible for any errors or omissions in the information or any consequences arising from the use of the information provided in this blog.


    About the author, Anshuman Kumar:


    Anshuman is passionate about start-ups. He’s always keen on studying the growth journeys of companies over the course of their time. His expertise in strategy, consulting, and MCI domains has led him to start his entrepreneurship journey, advising and assisting client organizations to accelerate their growth paths.

    Over his career spanning 15+ years, he has worked with various leading large and small clients across North America, Europe, South-East Asia, etc. He has handled clients across different verticals such as ICT, logistics, manufacturing, consumer, and defense, among others. In his free time, Anshuman indulges in reading personal development books, watching documentaries, and playing sports.

    Leave a Reply