The Netflix prize also put Netflix on the map in terms of being a company that solves hard problems. We are still talking about it today and you'd better believe it has inspired talented people to work at Netflix; they could easily blow $1M on recruiting people and have much less to show for it. It's why Netflix is part of "FAANG".
Reed Hastings genius is that he led Netflix through a number of transitions between fundamentally different businesses: he built a strong brand with the DVD-based business without permission from the studios, transferred that brand to streaming when the studios saw it as "free money". By the time the studios understood what it was worth Netflix decided it was cheaper to buy than rent. (just as a consequence of having more customers)
The new frontier is that they use your engagement data not just to "suggest" the next movie but to design movies that will keep you engaged.
It's a little bit scary with these services that are "all you can eat" games for $10 a month because you're giving up "voting with your dollar" but creating a trail of engagement that will be fed back into satisfying your narcissism. Taking screenshots and videos of games seems fun and harmless at first but somebody knows I had a big crush on Nikola and Chiara from Valkyria Chronicles 4.
Personally, the opposite has been happening in my recommendations. I've been switching over to Netflix less and less as its library thins, and the replacements seem not as compelling... can't even remember the last time I watched a full movie or TV show season on Netflix.
Guess I'm not the target demographic :( but it's not like I personally pay 'the Netflix bill' anyway.
Toddlers seems to enjoy the procedurally generated content though; maybe they're mistaking toddlers randomly bashing their screen for audience engagement?
If you are always "present" and engaged then the target is going to do most of the work themselves. If "the lights are on and nobody is home" when you try to take a step forward, you really take 10 steps back.
For those of us old enough to remember, it's not much different than going to Blockbuster. All of the new releases were along the walls with lots of copies to support the high demand. That's where everyone started when entering the store. If you found what you wanted, you grabbed a copy and left. In the middle of the store, the shelves were full of stuff you'd never heard of with one, maybe two, copies available. Both of those copies were covered in dust. You'd see people doing the physical version of endlessly scrolling to ultimately settle on "something" just to not be scrolling any more.
Really, the only difference now is at least you don't have drive somewhere to do the scrolling. I'd also say that there's at least the advantage of being able to do it in your PJs, but Blockbuster (any video rental place really) was the first public place that I noticed it became acceptable to not have to get dressed to visit.
I worked in a video store, back when there were such things, and can attest that the vast majority of people wanted the new thing and ignored the back catalog. It was my job to get them interested in the back catalog. I didn't do very well.
I joined Netflix because they had that back catalog available. But now that I'm old and grumpy, I've seen most of what I want to see in that back catalog, too. There's a ton of stuff in that category of "I'm sure it's great but I just don't want to work that hard". Also... most of that back catalog is crap, just under Sturgeon's Law.
Sadly, Netflix has figured that out, and gotten rid of most of its back catalog of DVDs. I hope the real film buffs have some other place to go get it.
With Netflix producing its own content now, and with the cost of acquiring content rights much higher than it used to be (all major streaming platforms want to offer great content), I'm wondering how much the business imperative impacts the recommendations we get -> eg. Netflix giving priority to its own content over licensed shows/movies.
They are clearly not using the ratings based automatic recommendations any more. It's not even relevant given the limited and generally low-quality content available. It's just about keeping enough people paying.