I don't understand a basic concept here. How does Netflix assign a monetary value to the improvement in rating prediction?
For example, does rating prediction affect their inventory management? Or is it more of an issue of customers trusting/liking Netflix better if it's recommendations are better?
It seems that Netflix is trying to offer a prize to stimulate innovation much like the X-Prize worked to raise interest in privately funded rocketry/space launching.
For example, does rating prediction affect their inventory management? Or is it more of an issue of customers trusting/liking Netflix better if it's recommendations are better?