Netflixs IT Acquiring Acquisition

As the spread of COVID-19 affects most industries and economies around the world, people are forced to stay at home to prevent the spread of the coronavirus. People have nothing to do and are bored to death. In this lockdown situation, your best partner may be your Netflix account, which contains thousands of interesting movies, series, and shows.

Netflix was founded on August 29, 1997, in Scotts Valley, California, when founders Mark Randolph and Reed Hastings had the idea to offer an online movie rental service. The company started the rental shop with just 30 employees and a selection of 925 titles, nearly the entire catalog of DVDs in print at the time, offering installments and expiration dates on a pay-for-rent model. Rent is about $4 plus $2 shipping.

In 2000, Netflix launched a personalized movie recommendation system. In this system, user-based ratings help to accurately predict Netflix members' choices. By 2005, Netflix had grown to 4.2 million subscribers. On October 1, 2006, Netflix offered a $1 million reward to the developer of the first video recommendation algorithm to outperform its existing algorithm, Cinematch, by predicting customer ratings by more than 10%.

In 2007, the company decided to abandon its original DVD core business model and launch an Internet video-on-demand service. As part of their Internet streaming strategy, they decided to stream their content on the Xbox 360, Blu-ray Disc players, and TV set-top boxes. These companies also partner with these companies to stream their content online. With the launch of the service in Canada in 2010, Netflix also offers services to Apple products, Nintendo Wii, and other connected devices.

Netflix and IT

Netflix needs information technology to support data analytics in making numerous decisions about consumers. The company collects data based on what users have watched in the past as well as their personal TV preferences. This data enables Netflix to provide each user with a personalized list of recommended shows and movies based on their personal preferences.

Netflix also uses this information to make decisions about various developments, such as: what content they should invest in. whether they should make original series. All of this information enables Netflix to serve consumers and entice them to return to the site. In discussion, Netflix has plan developed a new machine learning algorithm based on reinforcement learning to create an optimal list of recommendations considering a finite time budget for the user. They prepare the budget and also all division supports for this implementation

The target is the engine analyses all the users of the service and makes recommendations to a new user based on what items have been relevant to other users with similar tastes as well as filters the intrinsic properties of the items the user has already shown an interest in and time duration of a viewer watching a show.

Question: In your opinion, based on the case above what would you suggest as the acquisition methods for Netflix to implement its IT needs?