There were some interesting Netflix articles over the past week or so. First, Nathan McAlone writes that Netflix wants to ditch 5-star ratings:

The problem, [CPO Neil] Hunt tells Business Insider, is that people subconsciously try to be critics. When they rate a movie or show from one to five stars, they fall into trying to objectively assess the “quality,” instead of basing the stars on how much “enjoyment” they got out of it.

Here’s an example. Let’s say you had fun watching a crappy movie, but still gave it a two-star rating because you know it’s not a “good” film. That presents Netflix with a problem. The system thinks you hated the movie.

I think embarrassment plays a part in this as well. Even when ratings are private, we’re worried that word might get out. For example, I’d be happy if all my Netflix recommendations consist of “Movies similar to Battleship”, but I certainly don’t want any of you to know how much I liked that terrible movie.

Related to this, McAlone also wrote about Netflix’s most important metric:

That means that the most important economic metric for Netflix is how much a TV show or movie contributes to Netflix’s ability to sign up and retain customers.

The problem is that the current star rating system doesn’t give them that metric because it’s associated with “quality”, not “enjoyment”. So I might rate Out of Africa 5 stars because I objective know it’s a good movie, but if Netflix starts recommending “Boring movies with Meryl Streep” to me, I’m out of there.

Netflix has a very difficult product design challenge ahead of them. They have to change an established user mental model (“stars=quality”) to something different (“tell us what you enjoy watching”) that will help them provide a better and more compelling service.