Netflix offering big money for inputs from consumers

Online DVD retailer Netflix Inc. is now asking for recommendations from people on how they can improve upon their movie recommendation system.

And to spark the interest in this concept, they are offering a $1 million reward as an incentive.

The company is trying to use this method to stay on the competitive edge over their rivals as the online DVD market is seeing new threats from digital movie stores like Apple iTunes. They also already have a potent competitor in Blockbuster Inc.

Netflix believes that by implementing some new innovative ideas, they might be able to offer better products to their 5.2 million subscribers and in the process attract some new ones.

Netflix CEO Reed Hastings spoke on this new development: “Right now, we’re driving the Model T version of what is possible. We want to build a Ferrari and establishing the Netflix Prize is a first step.”

Checkout: Netflix Prize