Crowdsourcing at Netflix

The challenge: Create an algorithm that was 10% better than the one Netflix was currently using to recommend movies to subscribers and win $1,000,000!

The contest began on October 2, 2006 and was expected to take some time. It is a great example of crowdsourcing, or community-based design, which allows organizations to become more porous and tap talent outside of their organization.

“It’s been quite a drama,” said Neil Hunt, Netflix chief product officer. “At first, a whole lot of teams got in — and they got 6-percent improvement, 7-percent improvement, 8-percent improvement, and then it started slowing down, and we got into year two. There was this long period where they were barely making progress, and we were thinking, ‘maybe this will never be won.’

On September 21, 2009 Netflix awarded the $1M Grand Prize to the collaborative team “BellKor’s Pragmatic Chaos.” Tune in tomorrow to find out about the role of collaboration in this contest!

Debbie

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