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Student’s Name: Professor’s Name: Course: Date: How Netflix Reverse Engineered Hollywood Netflix is a major player in the entertainment industry in America. The company started out as a video renting company and slowly grew to the multimillion-dollar empire that it is today. With a worldwide membership of over 80 million subscribers, it is one of the most profitable ventures on the planet. Before it began offering movie-streaming services, Hollywood was very skeptical and was convinced it sought to take over the industry and in turn reduce the profits that were accrued. The company had other ideas that would help in taking over the film industry. The company understood that time would come when it would give viewers the chance to watch their favorite movies at the comfort of their home, on their PCs or even tablets. The company also understood that to give viewers the best choices; it would need to provide the best options and suggestions. The following paper discusses how Netflix uses both software and manpower to generate recommendations for its clients. Netflix uses a sophisticated database to come up with suggestions as to what its subscribers should watch. The current system that Netflix has which recommends movies and shows for its subscribers seems to be so accurate that it can be frightening at times. It started out small but has since grown to become one of the most sophisticated algorithms anywhere on the planet. The company understood that it was important to sell and rent blockbusters as well older movies with smaller titles. It was the only way the company would make a substantial profit. When Netflix was still in its infancy and had just about 1

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