Technology infrastructure: Netflix’s infrastructure is on Amazon EC2 with master copies of digital films from movie studios being stored on Amazon S3. Each film is encoded into over 50 different versions based on video resolution and audio quality using machines on the cloud. Over 1 petabyte of data is stored on Amazon. These data are sent to content delivery networks to feed the content to local ISPs.
License content : In order to provide a wide range of diverse titles licensing content is one of their main activities. Constantly uploading new titles.
Original content: They started producing original content in 2007.
Consumer behavior data/Knowledge of what content will be popular : With the star rating system and viewer records Netflix can provide better services.