I kept on scrolling Netflix for hours yet I was not able to choose which show to watch. I had to read reviews on other sites to check if the show really stood upto my expectations before watching over Netflix.

Not able to choose suitable content over Netflix is a common issue among users which is more of a psychological problem but might become Netflix’s major problem later on.

Why this happens at the first place and what this case study will be trying to solve is:

Paradox of choice Analysis paralysis

Defining “Paradox of choice.”

Though we humans have a very advanced brain, we are still susceptive to the likes of “choice paradox “ when too many options are given to choose from.

If I am still not making any sense to you, here is a study demonstrated in the Columbia University known as “jam study”.

In this study supermarket shoppers were given the option of choosing from a table offering six samples of jam or one displaying 24 varieties. While more people stopped at the table with 24 choices, only 3 per cent went on to purchase a jar, compared to a third of all shoppers who stopped at the table with just six varieties.

When we are given too many options, it becomes tough for our brain to choose from it, also might end up choosing nothing at all.

Having too many options also lead us to our second problem which is

Analysis paralysis

Analysis paralysis refers to a situation in which an individual or group is unable to move forward with a decision as a result of overanalyzing data or overthinking a problem.

On Netflix when you have 12+ options on your mobile screen that also without any straightforward parameter to compare each other, it takes a lot of active analysis and time to make a decision which then leads to analysis paralysis, resulting into 2 effects :

Diminished satisfaction, even if you have made your choice. Suppressed decision making.

Why are these psychological problems even worth of any attention?

90 sec or Bust. “Consumer research suggests that a typical Netflix member loses interest after perhaps 60 to 90 seconds of choosing, having reviewed 10 to 20 titles (perhaps 3 in detail) on one or two screens,” they write. “The user either finds something of interest or the risk of the user abandoning our service increases substantially.”

To tackle 90 sec or Bust, Netflix built Billion dollars of algorithm engine to provide interesting content to its users in minimum time, yet smallest research such as mine speaks differently. According to my research (in detail below) users trust their friends recommendations 3x more than going with what Netflix suggests.

So, faster & longer you engage a user, more you earn profits from them. In this scenario both of these psychological problems directly impact the decision making time of the user hence loosing on money.