Netflix Really Can Predict What You'll Like

Netflix is on a roll. The streaming service just approved a new season of its original series Hemlock Grove. The show didn't grab the critical acclaim that House of Cards did, but it still attracted enough viewers to warrant signing up for another round.

In the following video, Fool contributor Demitrios Kalogeropoulos discusses how Netflix's analysis of viewer data has helped it make smart gambles like this on exclusive content. The biggest payoff for the company, he says, is that net subscriber additions should continue trending up as the service succeeds in differentiating itself from the competition.