How Netflix Beats Amazon

The difference between the way Netflix and Amazon use big data is the difference between a hit and an also ran, reports The Observer. Data scientist Sebastian Wernicke, in a TED Talk, “explained how two shows, which were strategically made with data analysis methods creators thought would ensure Breaking Bad caliber success, were created, and how they faired in the ratings. One, Netflix’s House of Cards, worked—the show went on to score a 9.1 on the rating curve. The other, Amazon’s Alpha House, however, fell short and landed at 7.5 on the curving, marking it as a completely average show.”

“When Amazon set out to make a data-driven show, the company held a competition. They evaluated a bunch of show ideas, selected eight of them and then created a pilot episode for each and made them available online for free. Millions watched the free episodes, and the company used data (such as how many people watched each show, how long they watched and what parts they skipped) to create a show they hoped would be destined for greatness. After crunching millions of data points, the results said they should create a sitcom about four Republican U.S. senators. Alpha House was born.”

“Around the same time, Netflix was brewing up something similar. But instead of using a competition, the company looked at the data they already had about viewing on their platform (ratings, viewing history, etc). They used that data to discover small bits and pieces about what viewers like and took a leap of faith … Amazon’s show wasn’t a booming success because it used data all the way. Netflix, however, looked at what users like and used that insight to think up a concept for what they believed would be a hit show, and it clearly worked.”

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The Same Old Story

The Atlantic: “Storytelling has a shape. It dominates the way all stories are told and can be traced back not just to the Renaissance, but to the very beginnings of the recorded word. It’s a structure that we absorb avidly whether in art-house or airport form and it’s a shape that may be—though we must be careful—a universal archetype …

Storytelling is an indispensable human preoccupation, as important to us all—almost—as breathing. From the mythical campfire tale to its explosion in the post-television age, it dominates our lives. It behooves us then to try to understand it. Delacroix countered the fear of knowledge succinctly: “First learn to be a craftsman; it won’t keep you from being a genius.” In stories throughout the ages there is one motif that continually recurs—the journey into the woods to find the dark but life-giving secret within.”

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