BigShinyThing

We’ve written about crowdsourcing before but only using artsy, slightly Utopian examples like the Swarm of Angels film projects. Now it appears that commerce is taking notice of the phenomenon.

According to the good old Wikipedia, crowdsourcing is

A term coined by Wired magazine writer Jeff Howe and editor Mark Robinson in June 2006. It describes a business model akin to outsourcing, but relying upon unpaid or low-paid amateurs who use their spare time to create content, solve problems, or even do corporate R&D. Crowds targeted for crowdsourcing include garage scientists, amateur videographers, freelancers, photo enthusiasts, data companies, writers, smart mobs and the electronic herd.

Whilst we don’t find the iPod flash mob at Liverpool Street Station particularly interesting, we do think that Netflix’s $1m prize R&D project is rather cool. Especially if they actually pull it off. Netflix has offered the prize to everyone and anyone who can come up with a better recommendation engine for their DVD rental service. In true Web 2.0 style, Netflix has said it will publish a detailed description of the winning approach for the benefit of companies, entrepreneurs and academicians.

Recommendation systems (based on the crowdsource-y idea of ‘collaborative filtering’) help consumers choose taste-based products by comparing people’s purchases with those of others who display similar tastes or purchasing preferences. “Recommendation systems covering a wide variety of categories will play an increasingly significant commercial role in the future,” said Netflix Co-Founder, Chairman and CEO Reed Hastings. Well, the idea has certainly worked for Amazon!

After they’ve got their customers to figure that their film suggestions, maybe Netflix should ask them about how to sustain their business model: DVDs-by-post in a future of weightless media? Ah well…

Of course all the little Linux (their mascot, Tux the Penguin, is pictured) hackers have been doing this collaborative inventing for yonks… but now it appears to have tipped over to the mainstream.

Read more about the wisdom of crowds at Howe’s blog.

This post would have come via Sense.PSFK if their link worked x.