Media & Streaming – Netflix’s Recommendation Engine
Impact:
80% of watch time is driven by recommendations.
Estimated to save over $1 billion annually in churn prevention.
Personalized experience feels like “content curated just for me.”
Media Streaming
Use Case: Driving 80% of watch time through intelligent content recommendations
Problem:
With thousands of shows and limited attention span, helping users discover content that fits their preferences is critical to retention.
Math-Based Solution:
Matrix factorization using Singular Value Decomposition (SVD) to uncover latent factors that relate users and shows.
Collaborative filtering for personalized recommendations.
Reinforcement learning models test which thumbnails or previews maximize engagement.
A/B testing + statistical significance testing ensure that any UI or model change delivers real improvement.
Impact:
80% of watch time is driven by recommendations.
Estimated to save over $1 billion annually in churn prevention.
Personalized experience feels like “content curated just for me.”
