Netflix is easily the biggest name of the Online DVD Rental empire. If you haven’t heard of Netflix I suggest getting out from under that rock.
To win the prize, a software program must improve the accuracy of Netflix’s current movie recommendation system by at least 10 percent. The differences will be tracked by a program that quantifies how well the recommendation systems predict which movies will be liked or disliked by a profiled consumer.
“Right now, we’re driving the Model T version of what is possible,” said Netflix CEO Reed Hastings. “We want to build a Ferrari and establishing the Netflix Prize is a first step.”
It has been speculated that companies like Netflix might soon be extinct with a more convenient sources for your home viewing efforts.
Its no wonder that they would be doing everything they can to improve their service. Or are they simply improving their exposure.
The very fact that I am posting about this only brings even MORE exposure to Netflix, and that might be the point.
It does seem a little unreasonable that they would pay a MILLION DOLLARS to help improve their “reccommendations system”. Now I know that the recommendations do point out more movies for you to rent, and more rentals means the need for an advanced rental package, which means profit. But it seems like a LOT of money to give someone for a slight improvement. If that 10% improvement results in a 10% increase in profit, then maybe its worth a cool million, but I doubt a 10% improvement in their movie recommendation system is going to translate into 10% increase in profit.
But maybe all this free advertising will!
