saw opportunity in long tail of DVDs ¨ Stocked 120,000 movies mailed out from 50 hubs ¨ Matched renter interest with a low cost movie from the long tail ¨ Announced $1M prize: Help find a better recommendation algorithm ¨ 4 years and a team of 10+ PhDs solved that ¨ In 8 years, Blockbuster, Hollywood video et. Al. are almost out of business 4 Recommend movies in the long tail, personalized to the customer, lowering costs