Business
Netflix’s Recipe For Success Includes ‘Secret Sauce’ Spiced With Silicon Valley Savvy
Los Gatos, California – Although its video streaming service has a Hollywood shine, Netflix continues to draw on its Silicon Valley roots to remain ahead of traditional TV and movie studios.
The Los Gatos, California-based business, which is more than 300 miles from Hollywood, frequently uses its technological toolkit without viewers’ knowledge. It frequently employs tiny twists on the knobs of viewer suggestions to keep its 270 million global members satisfied at a time when most of its streaming competitors are experiencing waves of cancellations from inflation-weary customers.
Even when hit TV shows like “The Crown” or “Bridgerton” are popular, Netflix strives to cater to its diverse audience. One component of that mix is adapting summaries and trailers for its diverse lineup of episodes to each viewer’s interests.
Netflix’s Recipe For Success Includes ‘Secret Sauce’ Spiced With Silicon Valley Savvy
Someone who enjoys romance may watch a story summary or video trailer for “The Crown” that focuses on Princess Diana and Charles’ relationship, but another viewer interested in political intrigue may see a clip of Queen Elizabeth meeting with Margaret Thatcher.
For an Oscar-nominated film like “Nyad,” an action fan may see a trailer of the titular character immersed in water during one of her heroic swims, but a comedy fan may see a lighthearted clip containing some hilarious banter between Annette Bening and Jodie Foster.
Netflix can pull off these variations because it thoroughly understands viewing habits gleaned from crunching data from subscribers’ histories with its service, including those of customers who signed up in the late 1990s when the company launched a DVD-by-mail service that lasted until last September.
“It is a secret sauce for us, no doubt,” Eunice Kim, Netflix’s chief product officer, said when outlining the complexities of how the company tries to entice different consumers to watch various episodes. “The North Star we have every day is keep people engaged, but also make sure they are incredibly satisfied with their viewing experiences.”
As part of that effort, Netflix is redesigning the home page users see when they watch the streaming service on a television. The improvements are intended to package all of the information that may appeal to a subscriber’s preferences more compactly, reducing “gymnastics with their eyes,” according to Patrick Flemming, Netflix’s senior director of member products.
What Netflix is doing with its previews may appear insignificant, but it can have a significant impact, especially if customers trying to save money begin to reduce the number of streaming services they use.
According to data compiled by the research firm Antenna, video streaming services experienced approximately 140 million account cancellations last year, a 35% increase from 2022 and nearly tripling the volume in 2020, when the COVID-19 pandemic created a surge in demand for entertainment from people confined to their homes.
Netflix does not divulge its cancelation or churn rate, but its streaming service added 30 million subscribers last year, the second-largest annual rise after its surge during the 2020 pandemic lockdowns.
A crackdown on viewers who were freeloading off Netflix customers and sharing their account credentials contributed to last year’s subscription surge. According to J. Christopher Hamilton, an assistant professor of television, radio, and film at Syracuse University, the corporation also benefits from technological know-how, which allows it to continue funneling shows to clients who enjoy them and believe the service is worth the money.
Netflix’s Recipe For Success Includes ‘Secret Sauce’ Spiced With Silicon Valley Savvy
“What they have been doing is pretty ingenious and very, very strategic,” Hamilton stated. “They are definitely ahead of the legacy media companies who are trying to do some of the same things but just don’t have the level of sophistication, experience nor the history of the data in their archives.”
Netflix’s nerdy roots were originally derided by an entertainment industry that looked down on the company’s geekiness.
“It’s a little bit like, is the Albanian army going to take over the world?” former Time Warner CEO Jeff Bewkes remarked of Netflix in a 2010 interview about the threat it represented.
Not long after that rebuke, Netflix began mining its viewing data to figure out how to create a slate of original programming that would attract more subscribers — an ambitious expansion that forced Time Warner (now merged into Warner Bros. Discovery) and other long-established entertainment companies such as Walt Disney Co. to scramble to build their streaming services.
Although those expansions initially drew many customers, they also resulted in significant losses, prompting management changes and harsh cuts, including the abrupt termination of a CNN streaming service.
Netflix’s use of technology to retain members and raise its profits—the company’s profit increased 20% to $5.4 billion last year—is now widening the gap with competing providers still struggling to cut losses.
Disney’s four-year-old streaming service just became profitable following an overhaul managed by CEO Bob Iger, but he believes more effort is needed to catch up with Netflix.
“We need to be at their level in terms of technology capability,” Iger stated at a conference earlier this year. “We’re now in the process of creating and developing all of that technology, and obviously the gold standard there is Netflix.”
Netflix’s Recipe For Success Includes ‘Secret Sauce’ Spiced With Silicon Valley Savvy
Netflix isn’t going to help its competitors by revealing its secrets, but the slicing and dicing typically begins with determining which viewers gravitate to specific genres — the broad categories include action, adventure, anime, fantasy, drama, horror, comedy, romance, and documentary — and then delving deeper from there.
In other cases, Netflix’s algorithms will attempt to predict a viewer’s mood at any particular time by evaluating which titles are browsed or clicked on. In other cases, technology can easily determine how to make a film or television series as appealing to specific viewers as feasible. If Netflix’s data shows that a subscriber has viewed a lot of Hindi productions, it would almost be a no-brainer to show footage of Bollywood star Alia Bhatt in a role she performed in the American film “Heart of Stone” rather than the film’s lead actress, Gal Gadot.
“We want to do a really good job putting the things that you prefer in front of you,” Kim stated. “Part of that is the content recommendations themselves, but it’s also about how we present the content to you.”
SOURCE – (AP)
Business
Walmart Charged With Unlawfully Establishing Bank Accounts for 1 Million Drivers
(VOR News) – The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and a fintech company called Branch Messenger, alleging that the two companies forced more than a million delivery workers to use costly bank accounts to receive their paychecks. Both of these companies were the targets of the lawsuit.
According to the action filed by the Consumer Financial Protection Bureau (CFPB), Walmart and Branch are accused of opening deposit accounts for Walmart’s Spark Drivers, who are considered independent contractors, without first getting their consent.
These bank accounts contained drivers’ personal data, including their Social Security numbers.
The lawsuit specifically claims that Walmart’s drivers, who are in charge of delivering goods from the company’s warehouses to consumers, are only allowed to have their earnings transferred into these branch accounts.
This goes against the company’s rules, which permit them to move their earnings to different accounts.
Walmart reportedly told employees in 2021 that using these accounts may lead to firing.
Additionally, the lawsuit claimed that accessing profits through the accounts was a “complex process,” typically causing weeks-long delays. Among the other accusations that were made was this one.
This was the predicament they ultimately found themselves in, even though the business had assured them that they would have prompt access to funds.
To make matters worse, according to the Consumer Financial Protection Bureau (CFPB), drivers allegedly paid ten million dollars in “junk fees” to move their earnings to different bank accounts.
Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, said, “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees,” in his criticism of the practice. “Junk fees are a waste of money.”
This case’s next section outlined the traits of the average Spark Driver: “in addition to being a woman, having children, not having a college degree, and having a low income.”
Walmart denied the accusations made by the Consumer Financial Protection Bureau (CFPB) and stated in a statement that it will firmly defend itself in court.
Walmart released a statement claiming that the Consumer Financial Protection Bureau’s (CFPB) hurried lawsuit is full of factual errors, exaggerations, and blatant misrepresentations of basic legal principles.
The Consumer Financial Protection Bureau (CFPB) never gave Walmart a chance to make its case in an unbiased way throughout its rushed probe. In contrast to the Consumer Financial Protection Bureau, we are ready to fiercely defend the Company before a court that respects the due process of law principle.
Additionally, Branch was charged by the Consumer Financial Protection Bureau (CFPB) with engaging in deceptive advertising and neglecting to look into and address issues pertaining to the accounts. In addition to earlier accusations, these were also made.
In contrast, Branch denied the accusations and defended its services, saying, “The Consumer Financial Protection Bureau rushed to file a lawsuit despite the company’s extensive cooperation with its investigation, refusing to engage with Branch in any meaningful way about this matter.”
Branch responded to the Walmart accusations with a statement.
Furthermore, Branch claimed that the case was motivated more by a desire for “media attention” than by concerns for the welfare of the employees. This is what he stated in his statement.
This case, which is part of a larger campaign to give these gig workers more rights, targets these individuals who work for firms like Uber, Lyft, and DoorDash who are supposed to be independent contractors. It is considered that gig workers are independent contractors.
Earlier this month, the Consumer Financial Protection Bureau (CFPB) made claims against large financial firms, including Wells Fargo, Bank of America, and JPMorgan Chase.
According to the CFPB, these organizations did not stop fraud on the money-sending app Zelle, which is a platform that lets people send and receive money.
The choice of a new director may have an impact on the outcome of this lawsuit because President-elect Donald Trump is expected to choose a replacement for the present director of the Consumer Financial Protection Bureau (CFPB).
When Jaret Seiberg was employed as a financial services policy analyst at TD Cowen Washington Research Group, she noted that the new director’s strategy for handling such matters would be the deciding element in the case’s future course.
SOURCE: TN
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Business
Naked Wines Issues 2024 Performance Review
Naked Wines, an online retailer, has issued a performance review after announcing that sales declined 15% in the first half of the year to $112.3 million, despite management insisting it is in “a better position, both financially and strategically”.
Rodrigo Maza, who became CEO in February after joining the company as UK managing director in September 2023, stated that the company was in a better financial and strategic position, with “robust financial foundations” and committed and engaged members.
“Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period,” he told shareholders.
It also stated that a performance review is under underway in order to “proactively evaluate options to maximise shareholder value”. The end of the fiscal year will see the release of a report.
Naked Wines New CEO
He also welcomed new CFO Dominic Neary, who joined Naked Wines from Mind Gym in November, saying he was excited to collaborate with him “as we focus the business on cash, profitability, and growth with its rose wine and dry white wine.”A performance review is presently ongoing to “proactively evaluate options to maximise shareholder value,” according to the results, with a report expected to be released at the end of the fiscal year.
It also stated that it has continued to liquidate surplus inventory, with the UK and Australia returning to normal inventory levels, however US inventories remained “significantly” in excess, albeit being down $20.5 million from HY24.
It stated that it was “currently investigating options to reduce inventory levels more quickly,” which would help drive improved cash over the next two fiscal years, but “could lead to increased liquidation costs and result in EBIT at the lower end of guidance.”
Although active members (those with Angel or Wine Genie membership) declined 12% in the last 12 months, the statement noted retention of its ‘core’ members (those who had been customers for two years or more) was up two percentage points to 79%, and they remained “highly engaged”.
Customers’ total probability to refer the company to a friend (net promoter score) increased from 73 to 76 in the previous quarter, according to the report.
Turning Things Around
In August, the company reported a pre-tax loss of $16.3 million for the fiscal year ending 1 April 2024, up from $15 million in the fiscal year 2022/2023, with revenues down 18% to $290 million and repeat business down a quarter to $65 million.
Founder Rowan Gormley, on the other hand, asserted that the company was “making real progress in turning things around with its rose wine and dry white wine”.
It came after the engagement of debt consultants in March 2024 to look into refinancing possibilities and a possible wine company reorganization after the value of Naked Wines shares fell by about a third in the previous year.
Gormley increased his interest in Naked Wines significantly in December 2023, purchasing $9,600 in shares.
This was Gormley’s second round of stock purchases; he and other senior board members purchased a large number of shares in early November following a drop in share value after the firm stated it was lowering its full-year sales estimates to -12% to -16%.
Three of the company’s leaders at the time put a total of $94,000 in its stock.
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Business
Deal With Mexican Retailer, Nordstrom’s Founding Family Takes Nordstrom Private.
(VOR News) – The company made the news on Monday that it would transition into a private Nordstrom corporation after the conclusion of a buyout agreement with El Puerto de Liverpool, a Mexican department store, and the founding family of Nordstrom.
The arrangement was reached when the company acquired El Puerto de Liverpool. It is projected that the transaction will end up valued at around $6.25 billion.
The company’s board of directors came to a resolution that was unanimous in order to give their approval to the deal, which is expected to be completed in the first half of the year 2025.
The Nordstrom family would control the corporation under the agreement.
Which will equate to 50.1% of the business, while Liverpool will hold 49.9% of the company. In accordance with a press announcement, common stockholders would receive a cash payment of $24.25 for each share of Nordstrom common stock that they now hold in their possession.
According to a news release, Nordstrom’s Chief Executive Officer Erik Nordstrom remarked that the company has been working on the fundamental principle of assisting customers in feeling well and looking their best for more than a century.
This idea has been the driving force behind the company’s operations. The company is about to embark on an exciting new phase, and today marks the beginning of that chapter.
We, the members of my family, are looking forward to working together with our coworkers to make certain that Nordstrom will continue to be successful well into the foreseeable future.
Over the course of its history, the retail establishment has made repeated attempts to transition into a private operation. 2018 was the year that a previous attempt was unsuccessful at materializing.
In September, the Nordstrom family made an offer to purchase the company at a price of $23 per share, which resulted in the company being valued at around $3.76 billion. The offer was accepted by the company.
Over the course of the early trading session, the stock of Nordstrom witnessed a decrease of nearly one percent. As a result of a report that was published by Reuters in March, which said that the family intended to take the company private, the shares of the company have undergone a large boost.
November revenues beat Wall Street forecasts for Nordstrom’s fiscal third quarter.
This was due to the fact that the company’s revenue climbed approximately 4% year-over-year. However, the company claimed that it anticipated a dismal holiday season, which resulted in a little more optimistic prediction for the full year’s revenues. This was the case since the corporation anticipated that the holiday season would be weak.
Customers continue to be picky when it comes to purchasing things that are desires rather than needs, and they have paid greater attention to pricing, according to the majority of merchants, including Walmart, Best Buy, and Target.
These businesses have also said that customers have become more price conscious. This has led to an increase in the amount of pressure that is being placed on luxury clothing businesses.
Nordstrom, a department store, was initially founded in 1901 as a shoe business but later expanded into other areas. Since then, it has developed into a department store that provides customers with a diverse range of clothing and accessories at more than 350 sites around the United States. These locations include Nordstrom Rack, Nordstrom Local, and Nordstrom.
El Puerto de Liverpool is responsible for the management of two further department store chains under the names Liverpool and Suburbia. In addition, El Puerto de Liverpool is home to 29 shopping centers that are dispersed across the entirety of Mexico
SOURCE: CNBC
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