Abstract

The case study “Netflix: Leveraging Artificial Intelligence (AI) to Dominate the Streaming Market” describes how Netflix, Inc. – a prominent player in the global streaming entertainment industry – strategically integrated AI technologies into its business processes. The case starts out with a brief look at how Netflix emerged as a streaming powerhouse. It then describes in detail how the company leveraged AI to enhance its customer experience and transform its content delivery systems. Netflix developed its proprietary AI-driven recommendation system that employed advanced Machine Learning (ML) algorithms to analyze vast datasets including user viewing behaviors and demographic information to provide personalized content recommendations. The case highlights the benefits derived by Netflix by employing AI and ML, namely enhanced user engagement, prolonged subscriber retention, and improved content delivery practices. Despite the successful AI deployment, Netflix was vulnerable to the limitations and risks of AI. Can Netflix successfully overcome AI’s inherent limitations and sustain its competitive edge in the streaming entertainment industry?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand AI applications in the streaming entertainment industry.
• Analyze the impact of AI technologies on a company’s ability to attract and retain customers.
• Explain how digital capabilities such as AI are transforming business models in the digital age.
• Evaluate the risks and limitations of AI.
• Identify best practices and key success factors for integrating AI technologies onto entertainment platforms.

Keywords

Applications of AI; AI for Business Transformation; Risks and Limitations of AI; Artificial Intelligence; Content Recommendation; Personalization; User engagement; Data Analytics; Emerging Business Model; Machine Learning Algorithms; Business Transformation; Content Delivery Systems; Customer Retention Strategies; Ethics in AI and ML; and Predictive Analytics