http://www.wired.com/techbiz/media/magazine/16-03/mf_netflix?currentPage=1

"In October 2006, Netflix announced it would give a cool seven figures
to whoever created a movie-recommending algorithm 10 percent better
than its own. Within two weeks, the DVD rental company had received
169 submissions, including three that were slightly superior to
Cinematch, Netflix's recommendation software. After a month, more than
a thousand programs had been entered, and the top scorers were almost
halfway to the goal."

"Then, in November 2007, a new entrant suddenly appeared in the top
10: a mystery competitor who went by the name "Just a guy in a
garage." His first entry was 7.15 percent better than Cinematch;
BellKor had taken seven months to achieve the same score. On December
20, he passed the team from the University of Toronto. On January 9,
with a score 8.00 percent higher than Cinematch, he passed Dinosaur
Planet."

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