Profits:
1.Helps users to make the decision
2.Increases users awareness in the field of interest
Data collection
Target shops story
Patterns
Type of recommendation systems:
1.Collaborative filtering
2.Content based filtering
3.Hybrid systems
Collaborating filtering :
Content based filtering :
Summary :
how does recommendation system
Influence on marketing and sales?
Navid AZ [email protected]
Case:
What is?
Reed Hastings and Marc Randolph co-found Netflix to offer online movie rentals;
1997
The company launched the first DVD rental and sales site , netflix.com
1998 – 2000
4.2 million members
2007
Netflix introduced streaming
Netflix launched its first slate of original
programming
2013
-the first internet TV network nominated for the Emmy Awards
2016
Netflix is available worldwide: 190 countries;
2017
Netflix 100 million members globally
- Netflix wins its first Oscar for Best Documentary Short Subject
2018
The most nominated service at 2018 Emmy Awards with 112
nominations (HBO received 108); both Netflix and HBO won 23
awards each.
In year!
Paid memberships – over 148 million in 190 countries;
Revenue in Q1 2019 – over $4.5 billion (Netflix);
Stock-market value – nearly $165 billion, more than Disney ($130
billion);
Netflix has raised a total of $3.1 billion in funding over 10 rounds;
NOW
Marketing Funnel
Business Model
subscription-based
●Basic: 9$ per month, single screen at a time, SD
●Standard: 13$ per month, two screen at a time, HD
●Premium: 16$ per month, four screen at a time, 4K
8 key factors behind Netflix’s success story
1. Disrupting the industry – Disrupting itself
2. Flexibility
3. Investing in original content
4. No ads
5. Netflix pioneered binge-watching
●54% market size for netflix
●10% screen time in the US
6- Clever Campaigns
7. Excellent user experience
-Custom-created preview videos that
automatically play when you scroll over
a title card;
-A download-and-go feature that
allows users to watch shows offline;
-The ability to share your Netflix
account;
-30-day free subscription.
8. Personalization via the Netflix recommendation engine
“Almost everything we do is a recommendation.”
-Netflix engineering director Xavier Amatriain
●Investors
●Content Owners
●Internet Service Providers
●Filmmaker Guides and Individuals
●Cinemas and Theaters
●Prizes and Film Festivals
●Influencers
●IP Holders
●Pornhub!
●TV Network Companies
●Google and Amazon
●Alliances with Smart TV Companies
●Alliances with the Gaming Industry
Netflix different partners
How does
recommendation system work?
(Matrix Factorization)
Mina Tafreshi
Case: Netflix technical review
Recommendation systems are one of the most fascinating
applications of machine learning!
But the question is:
-HOW do these work?
Answer:
Matrix factorization
Netflix Universe
Anna
Bob
Copper Dana
M2
M1 M3
M4 M5
Anna 3 1 1 3 1
Bob 1 2 4 1 3
Copper 3 1 1 3 1
Dana 4 3 5 4 4
matrix
factorization
storage
Matrix factorization
1000
movies
2000 user
2000 * 1000
2M entries
1000
movies
100 Features
2000 user
100 Features
100 * 1000
100k entries
2000 * 100
200k entries