Difference between revisions of "Netflix Algorithm"

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== Privacy ==  
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=== Privacy ===  
  
=== Personal Data Gathering ===
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==== Personal Data Gathering ====
 
In order to analyze personalized recommendations, users are frequently required to provide personal information, which puts them at risk for privacy violations <ref>DeLeon, H. (2019, April 24). The ethical and privacy issues of recommendation engines on media platforms. Medium. Retrieved January 25, 2023, from https://towardsdatascience.com/the-ethical-and-privacy-issues-of-recommendation-engines-on-media-platforms-9bea7bcb0abc</ref>.
 
In order to analyze personalized recommendations, users are frequently required to provide personal information, which puts them at risk for privacy violations <ref>DeLeon, H. (2019, April 24). The ethical and privacy issues of recommendation engines on media platforms. Medium. Retrieved January 25, 2023, from https://towardsdatascience.com/the-ethical-and-privacy-issues-of-recommendation-engines-on-media-platforms-9bea7bcb0abc</ref>.
  
=== Netflix Terms of Use ===
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==== Netflix Terms of Use ====
 
They gather personal data such as names, email addresses, postal codes, payment information, phone numbers, and other data that is automatically gathered when users access the Service. The Netflix terms further say that they share or disclose personal data with third parties (referred to as "Service Providers") to carry out tasks on their behalf or aid in the delivery of services. Additionally, the agreements say that Netflix does sell users' private information to third parties for financial gain.  
 
They gather personal data such as names, email addresses, postal codes, payment information, phone numbers, and other data that is automatically gathered when users access the Service. The Netflix terms further say that they share or disclose personal data with third parties (referred to as "Service Providers") to carry out tasks on their behalf or aid in the delivery of services. Additionally, the agreements say that Netflix does sell users' private information to third parties for financial gain.  
  
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According to Common Sense Media, an organization that reviews and provides ratings for media and technology with the goal of providing information,  
 
According to Common Sense Media, an organization that reviews and provides ratings for media and technology with the goal of providing information,  
  
==== Data Sharing: Score 70% ====
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===== Data Sharing: Score 70% =====
 
1. Collected information is shared with third parties.
 
1. Collected information is shared with third parties.
  
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4. Unclear whether data are shared for analytics.
 
4. Unclear whether data are shared for analytics.
  
==== Data Security: Score 35% ====
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===== Data Security: Score 35% =====
 
1. Reasonable security practices are used to protect data.
 
1. Reasonable security practices are used to protect data.
  
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== Race stereotypes & inequalities ==
+
=== Race stereotypes & inequalities ===
 
As part of the general shift toward multiculturalism, mass marketing that caters to everyone has made way for ethnically particular niches that profit from calls for variety. Using tailored movie posters featuring Black supporting cast members, Netflix can persuade Black viewers to click on a suggestion they might not have otherwise. Importantly, Netflix, which relies on targeted marketing, does not need to ask customers about their race because they use prior viewing and search histories as proxies to estimate who will be drawn to certain cast movie posters <ref>Benjamin, R. (2020). Race after technology: Abolitionist Tools for the new jim code. Polity.
 
As part of the general shift toward multiculturalism, mass marketing that caters to everyone has made way for ethnically particular niches that profit from calls for variety. Using tailored movie posters featuring Black supporting cast members, Netflix can persuade Black viewers to click on a suggestion they might not have otherwise. Importantly, Netflix, which relies on targeted marketing, does not need to ask customers about their race because they use prior viewing and search histories as proxies to estimate who will be drawn to certain cast movie posters <ref>Benjamin, R. (2020). Race after technology: Abolitionist Tools for the new jim code. Polity.
 
10. Common sense privacy evaluation for Netflix. The Common Sense Privacy Program. (n.d.). Retrieved January 26, 2023, from https://privacy.commonsense.org/evaluation/Netflix</ref>.
 
10. Common sense privacy evaluation for Netflix. The Common Sense Privacy Program. (n.d.). Retrieved January 26, 2023, from https://privacy.commonsense.org/evaluation/Netflix</ref>.

Revision as of 03:36, 27 January 2023

Netflix, Inc. is an American subscription video on-demand over-the-top streaming service and production company based in Los Gatos, California. Netflix offers personalized recommendations, to help users find shows and movies of interest to them, which are at the core of the product. To this end, Netflix develops and uses a recommendation system using algorithms. Netflix lets users choose a few titles that you like when they first make a profile[1].

Based on this, first form a recommendation, and develop the algorithm by tracking the following while you are using the app.


Netflix Algorithm Recommendation Engines

Netflix’s recommendation has the most successful engine. According to News 10, 47% of North Americans use Netflix over other video streaming services. It’s so accurate that 80% of Netflix viewer activity is driven by personalized recommendations from the engine[2]. As of 2016, Netflix's recommended engine saves more than $1 billion a year in customer acquisition costs for Netflix. Netflix's algorithm ranks and constructs titles using machine learning systems such as reinforcement learning, matrix factorization, and other algorithmic approaches.


How Netflix started using algorithms

- In 1998, as a DVD mail rental company, it accumulated data on people, and the fact that the data was unique in the world made Netflix the best streaming service[3].

- These data are big data such as people's information, gender, region, age, viewing time, and taste.

- Using the customer database to open all of House of Cards in one day - based on the culture of watching series with family on weekends and holidays, marketing to the taste of U.S. citizens


How Netflix’s algorithms work

This is one of the most successful algorithms for all businesses. Netflix Recommendation Engine (NRE) is made up of algorithms that filter content based on each individual user profile. The engine helps users to find a show or movie to enjoy with minimal effort and spend more time on it.

User starts off creating their profile by selecting a few titles that you like. If users do not want to do it, diverse and popular sets of titles are represented for you.

Netflix Algorithm Engine observes the following [4].and accumulates data. - User’s interactions with its service; viewing history and rating other titles

- Other members with similar tastes and preferences on our service

- Preference and frequency about the titles such as genre, categories, actors, year of release, etc.

- The time-of-day user watches

- How long user watch, when the user paused, rewound, or fast-forwarded

- What scenes users have viewed repeatedly

- The device used to stream

- Demographic information, such as age or gender, is not included when making decisions


The Algorithm Engine is enhanced again overweighing the titles that users watched more recently. Therefore, NRE represents a ranking of titles in a way that is designed to present the best possible ordering of titles that you may enjoy. The most strongly recommended titles start on the left of each row and go right. This algorithm functions when users try to make searching. The top results will also be personalized[5].


Ethics in Algorithms: Using artificial intelligence and algorithms

The use of Algorithms – to make predictions, recommendations, or decisions has enormous potential to improve welfare and productivity. However, it also implies risks such as unfair or discriminatory outcomes or perpetuating existing socioeconomic gaps.


Actually nearly early every week, a new report of algorithmic misbehaviors emerges. Federal Trade Commission of the United States government offer important lessons about how companies can manage the consumer protection risks of its algorithms and Artificial intelligence[6].

- Be transparent: Do not deceive consumers about how automated tools is used and provide consumers with an adverse action notice

- Explain your decision to the consumer: Companies must know what data is used in your model and how that data is used to arrive at a decision.

- Ensure that your decisions are fair: Give consumers access and an opportunity to correct information used to make decisions about them.

- Ensure that your data and models are robust and empirically sound

- Hold yourself accountable for compliance, ethics, fairness, and nondiscrimination


Privacy

Personal Data Gathering

In order to analyze personalized recommendations, users are frequently required to provide personal information, which puts them at risk for privacy violations [7].

Netflix Terms of Use

They gather personal data such as names, email addresses, postal codes, payment information, phone numbers, and other data that is automatically gathered when users access the Service. The Netflix terms further say that they share or disclose personal data with third parties (referred to as "Service Providers") to carry out tasks on their behalf or aid in the delivery of services. Additionally, the agreements say that Netflix does sell users' private information to third parties for financial gain.

Netflix uses personal data to distribute and customize marketing or advertising, as well as to track user responses to emails, marketing campaigns, and online advertisements on third-party websites. Additionally, according to Netflix's conditions, they take reasonable precautions to ensure the security and confidentiality of the personal data they acquire from Service users.

According to Common Sense Media, an organization that reviews and provides ratings for media and technology with the goal of providing information,

Data Sharing: Score 70%

1. Collected information is shared with third parties.

2. Unclear whether this product supports third-party login.

3. Unclear whether data are shared for research and/or product improvement.

4. Unclear whether data are shared for analytics.

Data Security: Score 35%

1. Reasonable security practices are used to protect data.

2. A user's identity is verified with additional personal information.

3. Account creation is required.

4. Unclear whether this product limits employee or physical access to user information.


Race stereotypes & inequalities

As part of the general shift toward multiculturalism, mass marketing that caters to everyone has made way for ethnically particular niches that profit from calls for variety. Using tailored movie posters featuring Black supporting cast members, Netflix can persuade Black viewers to click on a suggestion they might not have otherwise. Importantly, Netflix, which relies on targeted marketing, does not need to ask customers about their race because they use prior viewing and search histories as proxies to estimate who will be drawn to certain cast movie posters [8].


References

  1. How Netflix's Recommendations System Works. Help Center. (n.d.). Retrieved January 25, 2023, from https://help.netflix.com/en/node/100639#:~:text=We%20estimate%20the%20likelihood%20that,preferences%20on%20our%20service%2C%20and.
  2. Meltzer, R. (2020, July 7). How Netflix utilizes Data Science. Lighthouse Labs. Retrieved January 25, 2023, from https://www.lighthouselabs.ca/en/blog/how-netflix-uses-data-to-optimize-their-product.
  3. Plummer, L. (2017, August 22). This is how Netflix's top-secret recommendation system works. WIRED UK. Retrieved January 25, 2023, from https://www.wired.co.uk/article/how-do-netflixs-algorithms-work-machine-learning-helps-to-predict-what-viewers-will-like.
  4. How Netflix's Recommendations System Works. Help Center. (n.d.). Retrieved January 25, 2023, from https://help.netflix.com/en/node/100639#:~:text=We%20estimate%20the%20likelihood%20that,preferences%20on%20our%20service%2C%20and.
  5. Meltzer, R. (2020, July 7). How Netflix utilizes Data Science. Lighthouse Labs. Retrieved January 25, 2023, from https://www.lighthouselabs.ca/en/blog/how-netflix-uses-data-to-optimize-their-product.
  6. Staff, the P. N. O., Staff, D. P. I. P. and C. T. O., Smith, A., & Fair, L. (2022, June 13). Using artificial intelligence and algorithms. Federal Trade Commission. Retrieved January 25, 2023, from https://www.ftc.gov/business-guidance/blog/2020/04/using-artificial-intelligence-and-algorithms.
  7. DeLeon, H. (2019, April 24). The ethical and privacy issues of recommendation engines on media platforms. Medium. Retrieved January 25, 2023, from https://towardsdatascience.com/the-ethical-and-privacy-issues-of-recommendation-engines-on-media-platforms-9bea7bcb0abc
  8. Benjamin, R. (2020). Race after technology: Abolitionist Tools for the new jim code. Polity. 10. Common sense privacy evaluation for Netflix. The Common Sense Privacy Program. (n.d.). Retrieved January 26, 2023, from https://privacy.commonsense.org/evaluation/Netflix