Article: Netflix Awards $1 Million Prize and Starts a New Contest

Netflix holds a competition for a better recommendation software than its current one. Interesting for competition and business.

The company’s challenge, begun in October 2006, was both geeky and formidable: come up with a recommendation software that could do a better job accurately predicting the movies customers would like than Netflix’s in-house software, Cinematch. To qualify for the prize, entries had to be at least 10 percent better than Cinematch.

article from the NY Times.