Netflix collects data on customers, content, and streams in order to understand user behavior and provide personalized recommendations. Three database tables are needed - one for customers, one for content, and one to track streams with customer ID, content ID, date/time, length, and rating. Example queries show how to retrieve customer contact information, analyze viewing trends over time, identify unstreamed content, determine costly customers, and evaluate content performance based on average rating and number of streams. A view is created to consolidate customer and stream data for analysis.