NFLX
We’ve discussed crowdsourcing and Netflix more than once. That it works for some uses better than for others is pretty clear… But Netflix has apparently messed up the database used in the original contest and that allowed some contestants to identify the actual people behind the movie choices, despite the promise of privacy. Needless to say, the FCC wasn’t too happy about it – and Netflix had to cancel its “Contest 2.0″, at least for now. Doesn’t mean that the tool doesn’t work, it just means that you have to be careful using it.
Netflix is one of the most admirable cases around on corporate strategy AND execution. It shows how you can make billions out of simple things. That said, they have to kill a lion a year to stay ahead. Investment-wise, we never got to the point where we felt we knew enough to invest in them – and don’t regret not doing it.
Read more about Netflix doing the right things at the right time
The Netflix Prize has been awarded and it’s a great example of crowdsourcing. But is such “open collaboration” a tool for every situation? How open do you really want to be? Some are looking at his and saying “hold your horses”. That’s always good advice in our book.