How would you like to have thousands of people help design your next product improvement?
Netflix, the online DVD rental company, set up a contest offering a million-dollar prize to anyone who developed algorithms that improved their movie recommendations by more than 10 percent. After almost three years, and entries from over 50,000 contestants, a group says that is set to win the prize.
(Here’s more information than most anyone would ever need about all this.)
First, does this seem like a lot of money to spend? Well, Netflix points out that it’s a low price for an improvement, which would increase both their customer satisfaction levels and their movie rental business.
Second, and the "good idea" part of this post, is that this is, to a great extent, really about marketing. Look at all the press, PR, viral conversations, and so forth that NetFlix is receiving, along with all the entrants and their friends and colleagues that are taking part and talking about the project. How much is it worth to your business to find an audience this large and involved to focus on your project?
What do you think? (Sorry, no prize for your thoughts.)
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