Netflix - the world's leading Internet television network with more than 33 million members in 40 countries has developed an algorithm (Cinematch recommender tool) that can predict the movies that a customer would watch based on
- Past behavior (view history)
- Product rating
- Recent comparison
Cinematch uses Nearest Neighbor method for predicting a movie
The company decided to have an Open contest to fine tune the recommendations (or the Next Best Action if you wanted it to be called so) - the winner would be the one who beat the recommendation of Cinematch by 10%.
AT&T with the combination of nearest neighbor , singular value decomposition (SVD) methods were able to win the one
Please have a look at http://www.research.att.com/articles/featured_stories/2010_01/2010_02_netflix_article.html?fbid=8rnpOtsYzRv for the full text.
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