The technical name for this is "collaborative filtering". I think they are basing their work on this paper
- http://www.jmlr.org/papers/volume10/takacs09a/takacs09a.pdf
EDIT: Actually looks like Eq (15) from
- http://public.research.att.com/~volinsky/netflix/BellKorICDM...
Anyway there are lots of papers around on the topic.