The Smart Business Strategy of Netflix

Have you ever felt that Netflix is deliberately making it harder for you to watch movies, and the reason is going to shock you.

Here's how they do it.

First, they overwhelm you with endless choices, knowing that too many options actually make you less satisfied. A phenomenon called the choice paradox. That's why you spend 15 to 20 minutes just browsing, feeling increasingly frustrated while looking for a single thing to watch but every single time you are unable to fixate on anything due to the Choice Paradox.

Then, when you're exhausted from choosing, Netflix becomes your savior with curated lists and personalized recommendations. As their product designer Glenn Davis says, they want to be your friend who helps you find the perfect watch, but the real thing is that after being frustrated with all the choices you just feel like falling down on the curated list.

Finally, they tap into the zygonic effect; our brains need to finish what we've started. That's why you feel compelled to keep watching even after your show ends. From creating the problem to providing the solution to keeping you hooked, what looks like a user experience problem is actually a carefully designed strategy to keep you loyal.

Now that's what I call smart business.