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Pedro Domingos

“Netflix’s algorithm has a deeper (even if still quite limited) understanding of your tastes than Amazon’s, but ironically that doesn’t mean Amazon would be better off using it. Netflix’s business model depends on driving demand into the long tail of obscure movies and TV shows, which cost it little, and away from the blockbusters, which your subscription isn’t enough to pay for. Amazon has no such problem; although it’s well placed to take advantage of the long tail, it’s equally happy to sell you more expensive popular items, which also simplify its logistics. And we, as customers, are more willing to take a chance on an odd item if we have a subscription than if we have to pay for it separately.”

Pedro Domingos, The Master Algorithm: How the Quest for the Ultimate Learning Machine Will Remake Our World
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The Master Algorithm: How the Quest for the Ultimate Learning Machine Will Remake Our World The Master Algorithm: How the Quest for the Ultimate Learning Machine Will Remake Our World by Pedro Domingos
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