Netflix has arrived in Australia and could use its data mining capabilities to provide stronger and more "snackable" video content to its users, making it a key mobile player alongside Facebook and Google.
In Australia, mobile use is largely dominated by Facebook and Google. In fact, 7.3 million Australians log onto Facebook on their mobiles every day, and 88 percent of mobile search is through Google.
Australians reach for their mobiles in cafes, and bus stops, accessing Facebook and Google whenever they have a spare moment in their hurried lives. But, Netflix arrived in March, representing a new player in the mobile arena, and a new avenue for Australians to spend their idle time.
Netflix is the dominant force in video streaming in the U.S., and while Facebook and Google are also strong in video consumption, Netflix could have a significant advantage for two reasons:
While Facebook and Google are also data-driven, Netflix has been focused on data mining relating to video entertainment for a number of years in the U.S., and has actually taken its data insights a step further in the creation of great content.
House of Cards is a runaway success and is an example of great content and great data mining. The creation of House of Cards happened as a result of data miners seeing a correlation between people who liked the BBC series in the ’90’s who also liked Kevin Spacey and/or director David Fincher.
Netflix can use this data mining capability to not only continue to create excellent content, but also to identify alternative formats for people on the move. Netflix registers and records data points and “events” including what you watch and when you watch it, and whether you paused, fast-forwarded, or watched the credits.
In the context of mobile, it records what type of device you are using, what area code you watch your shows in, and whether this is the same or different from your billing address.
Netflix could use this data to create “snackable” content identifying a sweet spot for length of video, and the appropriate cast and genre for content to be digested through a mobile context. These webisodes could compete for the time that is currently taken by Facebook and Google.
The additional data provided by Netflix about who is consuming what content in what location would likely be of interest to marketers, as it could lead to more targeted media buying.
Australians have smartphones and are using them to access the Internet every day through Google and Facebook. Netflix is available on their handsets (and desktops) as of last month, offering a compelling entertainment alternative.
I hope to see them continue to offer new content, but also to consider new content formats in the not-so-distant future.
