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$1 Million Prize Offered by Netfix

Know how to improve a movie recommendation system? Now you can use your knowledge to receive a $1 million prize! And this is not a joke at all. Netflix Inc., the online DVD rental pioneer, is throwing a contest, which will start on Monday, as an attempt to beat the competitors such as Blockbuster Inc. The $1 million prize will be given to the one who will develop a software program that will interpret the users` taste at least 10 percent better than the current recommendation system.

The program, that calculates what are the odds that the potential consumers will like a movie, will be tested and checked by a special program that will spot the improvements. Netflix CEO Reed Hastings said: "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." With the continuing growth of the consumers` behavior databases, evaluation programs like this are playing a major role in the field of Web commerce.

That will give the online businesses a lot more advantage in offering the consumers exactly what those want, thus attracting more and more new customers. Netfix is about to release around 100 million movie evaluations by about 500,000 of its subscribers. According to Netfix vice president, all the personal information is removed from these lists, so there will be no privacy violation. If no one will win the contest, the participant with the most progress will get $50,000 annually.