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.
