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Netflix Introduces Thumbs Up/Down, Discontinues Star Ratings
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Netflix Inc. (NFLX - Free Report) has officially ditched the star rating system and introduced the thumbs-up and thumbs-down system to recommend content on its platform.
In addition, Netflix said it will be providing a personalized percentage match score, an algorithm based system that will analyze individual “habits and behavior” of viewers and provide score to the content (movies and series) to reflect how well it matches with their preference.
In a blog post, it said that “Netflix has had star ratings for much of our history, but we’ve learned through over a year of testing that while we’ve used stars to help you personalize your suggestions, many of our members are confused about what they do.”
The post further added, “In contrast, when people see thumbs, they know that they are used to teach the system about their tastes with the goal of finding more great content. That’s why when we tested replacing stars with thumbs we saw an astounding 200% increase in ratings activity. The more you teach us about your unique tastes, the better job we can do suggesting your next great binge-worthy show or that perfect title for movie night.”
Rumors of Netflix ditching its five-star rating system surfaced last month. Back then, the streaming giant had also mentioned testing a button that will enable users to skip the introductory credits on selected TV shows.
Netflix’s focus on global expansion and original content has paid off, with the company adding 7.05 million net new subscribers in the last reported quarter, taking the total count to 19 million for 2016. Furthermore, for the first time, Netflix expects International segment to post profits around $16 million in the first quarter.
The company is scheduled to report its first-quarter 2017 results on Apr 17, 2017. Netflix remains committed to introducing 50% original offerings to its total content over the next few years. All this has been well reflected in the share price movement. Over the past one year, Netflix shares have outperformed the Zacks categorized Broadcast Radio/TV industry. While the industry gained 14.88%, the stock saw a return of 37%.
Better-ranked stocks in the wider technology space include Tech Data Corp , Leaf Group Ltd. and MeetMe, Inc. . While Tech Data sports a Zacks Rank #1, Leaf Group and MeetMe carry a Zacks Rank #2 (Buy).
In the trailing four quarters, Tech Data, Leaf Group and MeetMe have yielded positive average earnings surprises of 8.73%, 27.94% and 36.07%, respectively.
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Netflix Introduces Thumbs Up/Down, Discontinues Star Ratings
Netflix Inc. (NFLX - Free Report) has officially ditched the star rating system and introduced the thumbs-up and thumbs-down system to recommend content on its platform.
In addition, Netflix said it will be providing a personalized percentage match score, an algorithm based system that will analyze individual “habits and behavior” of viewers and provide score to the content (movies and series) to reflect how well it matches with their preference.
In a blog post, it said that “Netflix has had star ratings for much of our history, but we’ve learned through over a year of testing that while we’ve used stars to help you personalize your suggestions, many of our members are confused about what they do.”
The post further added, “In contrast, when people see thumbs, they know that they are used to teach the system about their tastes with the goal of finding more great content. That’s why when we tested replacing stars with thumbs we saw an astounding 200% increase in ratings activity. The more you teach us about your unique tastes, the better job we can do suggesting your next great binge-worthy show or that perfect title for movie night.”
Netflix, Inc. Price
Netflix, Inc. Price | Netflix, Inc. Quote
Rumors of Netflix ditching its five-star rating system surfaced last month. Back then, the streaming giant had also mentioned testing a button that will enable users to skip the introductory credits on selected TV shows.
Netflix’s focus on global expansion and original content has paid off, with the company adding 7.05 million net new subscribers in the last reported quarter, taking the total count to 19 million for 2016. Furthermore, for the first time, Netflix expects International segment to post profits around $16 million in the first quarter.
The company is scheduled to report its first-quarter 2017 results on Apr 17, 2017. Netflix remains committed to introducing 50% original offerings to its total content over the next few years. All this has been well reflected in the share price movement. Over the past one year, Netflix shares have outperformed the Zacks categorized Broadcast Radio/TV industry. While the industry gained 14.88%, the stock saw a return of 37%.
Currently Netflix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp , Leaf Group Ltd. and MeetMe, Inc. . While Tech Data sports a Zacks Rank #1, Leaf Group and MeetMe carry a Zacks Rank #2 (Buy).
In the trailing four quarters, Tech Data, Leaf Group and MeetMe have yielded positive average earnings surprises of 8.73%, 27.94% and 36.07%, respectively.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>