Netflix is not just a popular streaming platform, but also one of the most technologically advanced companies in the world. It relies heavily on advanced IT solutions, which in turn allows it to operate efficiently on a global scale and remain a leader in the entertainment industry. In this article, we will tell you about a real revolution that has changed the way millions of people around the world consume content.
A little history
Netflix began its history in 1997 as a DVD rental service by mail. Founded by Reed Hastings and Mark Randolph, the company initially focused on the traditional format of delivering movies on physical media, but even then it had a revolutionary business model that differed from conventional video rentals. Unlike traditional video rental stores like Blockbuster, Netflix offered a subscription service, allowing users to borrow an unlimited number of DVDs for a certain period of time for a fixed monthly fee. In addition, the company did not charge penalties for late returns of discs, which was one of the main advantages that quickly made the service popular. At launch, customers could choose movies on the website, and then DVDs were sent to them by mail. At the time, Netflix had only a small catalog of movies, but the platform was quickly expanding its offerings. Already in 2007, the company took an important step forward by launching a streaming service that allowed you to watch movies and TV shows online without having to wait for the delivery of disks. This move dramatically changed the entertainment market, and for several years Netflix focused on streaming video, gradually abandoning DVD rentals. The introduction of the streaming service and the start of its own content production consolidated Netflix’s position as one of the main players in the entertainment market, making it a global leader among streaming platforms.
Personalization through algorithms
Each Netflix user gets a unique experience thanks to smart algorithms. All of these technologies analyze your views, ratings, and interactions with content to create personalized recommendations. Instead of just offering movies by genre, the platform takes into account many nuances: the time of day, what content you are watching, and how many minutes you watch a particular video, even the speed of scrolling the page is taken into account. The algorithms also take into account the general behavior of other users with similar preferences, and all recommendations are based on artificial intelligence and machine learning. Thanks to this process, Netflix creates unique content offers for each user, tailoring recommendations to individual preferences and viewing style. This makes it easier to find new movies and TV shows that the system thinks you might like.
Streaming optimization
The company uses sophisticated technology to deliver high quality video even on slow internet connections. Adaptive streaming allows the platform to automatically adjust the video quality to your current internet speed. This means that even if your internet connection temporarily slows down, you can still continue watching without interruption.
Cloud infrastructure
Another equally important aspect of Netflix’s work is the use of cloud technologies. The company uses the cloud infrastructure from Amazon Web Services (AWS), allowing it to be available anywhere in the world. This guarantees stable viewing for millions of users at the same time. The high availability of the service is especially important during the premieres of popular TV shows or movies, when the number of viewers increases dramatically.
Data protection and security
Of course, Netflix pays great attention to the security and privacy of user data. The company uses modern encryption methods to protect personal information and prevent unauthorized access to accounts. The introduction of various cybersecurity technologies helps to reduce the risks of fraud and piracy, thereby keeping the content protected. They are also actively working to prevent illegal account sharing, which has now become a serious problem in streaming services, but due to the development of some algorithms, the platform can now more or less effectively track potentially suspicious activity.
We have previously written an article about how AI can completely change the entire movie industry. And now, compared to other film studios, Netflix is probably the one that is exploring the possibilities of artificial intelligence to transform cinema the most. An important aspect of this is the use of AI to create so-called “digital doubles” of actors. In fact, it is possible not only to simplify the filming process but also to open up completely new possibilities for using actors’ images in movies. For example, modern technologies like Beta Character AI allow creating extremely realistic three-dimensional models of actors using huge databases with records of their facial expressions, movements, and voices. Earlier, we also mentioned that while working on the latest Indiana Jones movie, AI used archival footage of a young Harrison Ford to rejuvenate his image in new scenes. To give you an idea, Netflix has already hired AI experts, offering salaries of up to $900,000 per year to develop similar technologies. All of this has drawn fierce criticism from actors and screenwriters who are concerned about the possibility of replacing real people with artificial models. Currently, the use of AI is limited to auxiliary processes, such as creating extras or effects. However, experts believe that artificial intelligence will soon make film production much cheaper and allow creating high-quality content with much lower costs for special effects and actors. Such technologies will automate many processes in the film industry. Just imagine the possibility of creating any hyper-realistic virtual scene with just one command you give to AI. I think we will talk about this topic again in our future articles, but for now, we have collected some interesting facts about Netflix below.
Interesting facts
The first original product. The first series created by Netflix was House of Cards in 2013. It was a turning point for the platform, which moved from streaming other people’s content to creating its own high-quality shows.
Number of subscribers. As of 2024, the platform has over 238 million active subscribers in more than 190 countries.
Internet traffic. Netflix accounts for almost 15% of global Internet traffic, making it one of the largest consumers of bandwidth on the network.
A suggestion for Blockbuster. In the beginning, Netflix tried to sell its business to Blockbuster, but their offer was rejected. Now, Netflix has become a global giant, and Blockbuster has practically disappeared.
Huge budgets for production. Netflix annually invests extremely large sums of money in the production of movies and TV series. For example, in 2023, the company spent more than $17 billion on original content, and this figure continues to grow. The main goal of such investments is to create exclusive projects that attract viewers and maintain a leading position in the streaming market.