On the contrary, within a few days of the Netflix prize challenge being launched, a guy put up a detailed blog post with a simple linear algebra method that could beat Netflix's system at the time (link below). It didn't come anywhere near the 10% improvement threshold, but it beat Netflix's system with a handful of lines of C code, and it ran off his laptop. Sounds like he would have made an excellent hire.

http://sifter.org/~simon/journal/20061211.html