Netflix, Inc. (NFLX) To Become Smarter In Coming Years

Netflix, Inc. (NFLX) To Become Smarter In Coming Years

Netflix, Inc. (NASDAQ:NFLX) will undergo some radical changes in the coming times, according to Chief Product Officer Neil Hunt. In a keynote speech during an Internet Week event in New York, Hunt said that the online video streaming service company would be focusing on customizing the user interface in such a way that users are not bombarded with lots of choices when they browse movies and TV shows.

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Netflix advances personalization technology

According to Hunt, Netflix, Inc. (NASDAQ:NFLX) is focusing more on building out personalization technology and is setting up infrastructure to deliver that content. Hunt said that in the coming days, users will no longer see a slew of shows and movies in a grid. Instead, he said their personalization technology will become so advanced that users will see just one or two recommendations that are a match to users’ likes and dislikes.

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“I think this vision is possible,” Hunt said, adding, “We’ve come a long way towards it, and we have a ways to go still

According to the executive, titles and grids will be minimized in the new Netflix. However, Hunt also said that delivering a completely linear, algorithm-driven experience like Pandora Media Inc (NYSE:P) in which Netflix just begins playing the perfect show is “somewhat unrealistic” for Netflix right now because people are in the mood for different shows at different times.

More choices for smaller groups

Netflix, Inc. (NASDAQ:NFLX) regularly hones its technology for offering the latest and most efficient recommendations. Only last year, the company introduced Max, a recommendation assistant that shows a single movie to the user after they reply to questions about their mood. Also the company is working to improve its algorithm to track the emotional elements watchers like about any particular show rather than just offering suggestions based on genre or actor.

Hunt acknowledged that the massive Netflix, Inc. (NASDAQ:NFLX) library includes movies and shows that people never want to watch and refer to as “junk.” Hunt, however, thinks that there are no bad shows but rather, ones with small and devoted audiences. He added that with their advanced personalization technology, smaller groups of audiences will be able to discover content that they didn’t come across before. He said that this will give greater creative freedom to film makers and actors.

The executive also noted that Netflix, Inc. (NASDAQ:NFLX) has reached its current heights without giving slots to commercials, and in the future, he believes that Internet TV might be the first nail in the commercial ads coffin.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at
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  1. I don’t know if this will necessarily add value. One reason why I will always miss Blockbuster is because it was always an experience going to the store not knowing what I’m going to go home with. I would pace all around the store to take a look at all the options and narrow it down to 3 choices and discuss it with my friends/gf until we made a decision. Part of the fun was seeing a lot of garbage and picking out the one thing I wanted to watch.

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