Netflix’ $1 Million “Recommendation Tool Challenge”

Recommendation will play an increasingly significant role in online content and services – so much so that Netflix is offering $1 million to anyone that can improve its recommendation system by 10 per cent. CEO Reed hastings said its current system was the equivalent of a Model T, but he wants the Ferrari. The current 5/5 ratings system is accurate “to within one star” but the company wants a new system for its 65,000 titles. If it can’t be done, there’s a $50,000 progress prize for whoever makes the most progress.
Techdirt has a valid point: “You have to wonder if other companies will start experimenting with this “winner takes all” form of outsourcing — or if people realize that all of the losers end up with nothing. Companies have plenty to gain if such programs work out — but it seems like plenty of people will question whether it’s worth building new tools for a company when they might not even get paid for it.”
Related:
— Earnings: Netflix Profit Nearly Triples in 2Q06; Spending On New Customers Up, Too
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This article originally appeared in MediaGuardian.

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