Hidden value in Netflix ratings

Karl Long writes:

Now Netflix has 2.3 Million subscribers [it's over 3 million now--Becky], so with each subscriber having rated an average of 150 movies that is 345 Million movie ratings. Now those ratings are valuable to three key stakeholders, Netflix, potential customers, and current customers.

1. Netflix gains a valuable resource that is hard to duplicate, that is almost the dictionary definition of a “strategic resource”, or a resource that can lead to a sustainable competitive advantage
2. Potential customers will perceive a way that they will get recommendations of movies they might like, and therefore contributes to customer aquisition
3. Current customers have invested in co-creating value with Netflix, and reap the rewards with movie recomendations and tools to help them discover new movies, contributing to deep customer loyalty

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via noisebetweenstations.com