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criticker.com does exactly this by normalizing individual user ratings into percentiles and calculating a "Taste Compatibility Index", floating those users whose ratings are closest aligned with yours to the top (and their highest-rated movies). In my case, the resulting predicted score for most movies is close to 80% accurate. Highly recommended site.

https://www.criticker.com/

Every major “movie provider” will have something like that. Netflix certainly has (https://en.wikipedia.org/wiki/Netflix_Prize).

Yes, but Netflix's recommendations are limited to Netflix's catalog.

Yes, that's how most recommendations are being effected. I think we need also an explicit way of communicating our preferences, and getting scores against them. The problem with recommendations is, they are not transparent enough and can fail.