This year at STRATA 2012, whether more data is needed or not was discussed. The best quote on this came from Xavier Amatriain (@xamat) while he explained how Neflix improves on his ‘rating’ algorithm.

More data availability implies better approaches. Data without sound approach is just noise. 

The talk “Netflix recommendations: beyond the 5 stars” was stunning and was unfortunately not posted online.

Recommended readings:

A) Are few ratings are more valuable than metadata

B) The end of theory

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