Does Netflix entirely rely on machine decision across the organisation?
Netflix´s wealth of data and sophisticated algorithms may lead to think that decisions such as investing or not in a new show is purely driven by machines.
It is not.
Viewing habits combined with smart algorithms are used for predicting consumer behaviour.
“We have projection models that help us understand, for a given idea or area, how large we think an audience size might be, given certain attributes about it,”
But their various projection models and cost analyses, don’t dictate their decisions.
“You have to be very cautious not to get caught in the math, because you’ll end up making the same thing over and over again. And the data just tells you what happened in the past. It doesn’t tell you anything that will happen in the future.”
Even in a data obsessed company like Netflix, humans are still in command for key investment decisions and data and smart algorithms only support the final decision making process.
“It’s 70 percent gut and 30 percent data,”