> 1. The shift from cheaply produced, low quality content, to higher quality "must see" shows. I think that the kind of direct analytics that Netflix has is ma

> 1. The shift from cheaply produced, low quality content, to higher quality "must see" shows. I think that the kind of direct analytics that Netflix has is making something obvious to execs that never was before. "must see" is a HIGHLY subjective term and there's a long tail. In other words if you're just looking at aggregates the really popular, cheap to produce shows are the clear winners. Reality TV. But if you look at segments or demographics, it might become clear that the Firefly/X files/Dr Who demo demands at least one good nerdy/sci fi show at any given time and lacking that, they will cancel their subscription. Similarly any other particular demo that you want to look at might demand content that fits thematically lest they too start looking elsewhere to spend their entertainment dollars. In a weird way it's sort-of gratifying that Netflix is storing so much viewing data because I think it will eventually become clear (if it's not already) that "niche" shows really are mainstream for certain groups of people and absolutely worth making.