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We present a matrix factorization model inspired by challenges we encountered while working on the Xbox movies recommendation system. The item catalog in a recommender system is typically equipped with meta-data features in the form of labels. However, only part of these features are informative or useful with regard to collaborative filtering. By incorporating a novel sparsity prior on feature parameters, the model automatically discerns and utilizes informative features while simultaneously pruning non-informative features.
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Koenigstein et al. (2013) studied this question.