Archive for 30 June, 2009
Two front runners in the The Netflix Prize contest, joined forces and submitted an algorithm that was 10.05 percent better than the one Netflix uses to recommend movies to its subscribers. The result was published on the Netflix Prize leader board on Friday.
The Netflix Prize an example of so-called Prize economics, “where competitive incentives are offered as an alternative to in-house research and development. Netflix has said that winning a 10 percent improvement on its recommendation algorithm for $1 million would be a tremendous bargain.“
Automated recommendation algorithms are seen as a key competitive edge in e-commerce, allowing retailers to guess the types of products and services customers are seeking by looking at their past behavior. The foundation of the Amazon “if you liked that, you may like this“