A Netflix user will browse the app for 90 seconds and leave if they find nothing.
Thumbnail artwork is actually NFLX's most effective lever to influence a viewer's choice. A user will look at one for only 1.8 seconds, so NFLX spends huge to optimize them.
Here's a breakdown🧵
1/ Spoiler alert: humans are visual animals.
Our eyes move 3-4x per second to process information and we can analyze an image in as little as 13 milliseconds.
2/ In 2014, Netflix consumer research showed that thumbnail artwork:
◻️ is "the biggest influencer...to watch content"
◻️ is the focus of 82% of browsing time
A user looks at one for only 1.8 seconds. If they can't find Netflix content in 90 seconds, they'll leave the app.
3/ Consequently, Netflix uses an elaborate thumbnail selection process for each of its 200m+ users.
The process is called aestethic visual analysis (AVA), which starts by pulling all the frames from a video.
For reference: a 1hr episode of "Stranger Things" has 86k frames.
4/ In a process known as "Frame Annotation", each frame is tagged with metadata identifying key variables:
◻️ Saliency
◻️ Frame #
◻️ Brightness / Contrast
◻️ Nudity probability
◻️ Face / skin tone
5/ The frames are then graded on these variables.
◻️ Visual (brightness, contrast, color, motion blur)
◻️ Contextual (face detection / shot angle)
◻️ Composition (photography principles like "rule of thirds", symmetry, depth of field)
6/ The next step is "Image Ranking", which chooses the best thumbnails (most likely to be clicked).
For "Unbreakable Kimmy Schmidt", Netflix research showed the bottom right frame as the "winner".
7/ Another winning trait is good localization.
The best thumbnails (green arrow) for each country for the show "Sense8" had attributes most attractive to that specific region.
8/ Also: thumbnails with villainous characters outperform.
Netflix says these bad guy thumbnails (green arrow) for "Dragons: Race to the Edge" are the most clicked.
9/ One last finding: Netflix discovered that thumbnails with more than 3 people vastly underperform.
Netflix applied this knowledge for the rollout of "Orange Is The New Black". Season 2 has only one character in the thumbnail (vs. an ensemble for Season 1)
10/ One reason Netflix started creating its own thumbnails is that the artwork provided by studios weren't optimized for the streaming app.
The creative work Netflix received was meant for other mediums like billboards or DVD covers.
11/ At the most basic level, Netflix applies ML to select a thumbnail for you based on recent watch history.
Take "Good Will Hunting" as an example:
◻️ Rom-com watchers get the top thumbnail ("a date")
◻️ Comedy fans get the bottom thumbnail (with Robin Williams)
11/ Here are different Netflix thumbnail selections for "Pulp Fiction":
◻️ Uma Thurman fans get the top thumbnail
◻️ John Travolta fans get the bottom thumbnail
12/ Unsurprisingly, Netflix also A/B tests the thumbnails it shows users. The artwork is constantly changing.
Here is a sample of thumbnails for the film "The Short Game" and how each performed:
13/ As with any ML algorithm, results can be curious. In 2018, Netflix was accused of creating artwork based on race.
For a majority caucasian film "Like Father", one Black user was served the right image. Netflix said it makes artwork only on viewing history (not demographics).
14/ A less harmless example of thumbnail optimization is showcasing trending actors / actresses for content they played a smaller role in:
never forget that episode of “Nathan For You” when he launched a fire detector product and tried to avoid import tariffs by turning it into a music device
One company that has been very good at navigating international food tariffs/regulations is Trader Joe’s. Built its dairy and wine businesses by finding workarounds.
If you are the person that did the un-aligned letters for the previous eBay logo, please contact the research app team. We are huge fans of how un-aligned the “e” is with the “y”.Bearly.AI
This article offers up reasons for popularity of simple font logos (mostly Sans Serif):
— Easier to standardize ads across mediums
— Improves readability (especially on mobile)
— The “brand” matters more than the logo velvetshark.com/why-do-brands-…
Berkshire Hathaway board member Chris Davis once asked Charlie Munger why Costco didn’t drop the membership card.
Let anyone shop and raise prices by 2% (still great value), thus making up for lost membership fees (and more).
Munger said the card is important filter:
▫️“Think about who you’re keeping out [with a membership card]. Think about the cohort that won’t give you their license and their ID and get their picture taken.
Or they aren’t organized enough to do it, or they can’t do the math to realize [the value]…that cohort will have a 100% of your shoplifters and a 100% of your thieves. Now, it’ll also have most of your small tickets.
And that cohort relative to the US population will probably be shrinking as a % of GDP relative to the people that can do the math [on Costco’s value].”▫️
I have a membership but have been guffing on the math for a few years tbh. They keep telling me to upgrade from Gold to Business but I’m too lazy (even if the 2-3% Cash Back on Business pays back after a few trips).
This is a long way of saying Costco’s membership price hike effective today — its first in 7 years — is annoying but when I decide to do the math in a few months, it’ll be worth it.
Anyway, here is something I wrote about Costco’s $9B+ clothing business my affinity for Kirkland-branded socks and Puma gym shirts. readtrung.com/p/costcos-9b-c…
Two notes:
▫️Meant “Executive” (not “Business”) membership
▫️Chris Davis was doing a pure thought experiment. Costco membership obvi high margin (on~$5B a year) and accounts for majority of Costco profits. Retail margin is tiny on ~$230B of annual sales (Costco would need like another $150B+ from letting anyone shop to make up membership profits)