Netflix and AI: The Invisible Director of Your Watchlist
Emma planned to watch just one episode. Two hours later, she was still watching—Netflix’s AI had seamlessly guided her choices. Behind the scenes, a sophisticated strategy of data-driven personalization kept users engaged, but at what cost to viewer autonomy?
At a glance
Industry
Streaming & Entertainment
Founded
1997 (DVD rental) 2007 (Streaming launch)
Subscribers
238+ million
(as of 2024)
Abstract
Netflix has transformed the global entertainment landscape by using artificial intelligence (AI) not only to recommend content but also to shape user behavior and viewing patterns. This case study investigates how Netflix’s AI-powered recommendation system impacts consumer autonomy, decision-making processes, and cultural exposure.
Through the lens of a user narrative, the case unpacks the mechanisms behind AI-driven personalization, ranging from autoplay features and curated thumbnails to real-time adaptive algorithms, and how these design choices foster prolonged engagement and binge-watching habits. It also dissects each stage of the decision-making process to illustrate how Netflix’s AI influences problem recognition, information search, evaluation of alternatives, purchase decisions, and post-consumption behavior.
The dual nature of AI is highlighted in this case study: while it simplifies content discovery and enhances user satisfaction, it also risks creating filter bubbles and reinforcing echo chambers. The findings reveal a critical tension between engagement optimization and user agency, raising ethical questions about algorithmic transparency, diversity of content, and the psychological effects of over-personalization.
Ultimately, this case invites students and professionals to reflect on the broader implications of AI in digital consumption and challenges streaming platforms to find a responsible balance between personalization and preserving viewer autonomy.
Cover Photo: Shutter Speed on Unsplash
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(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
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