Long Tail Model (con't) If you observe carefully this draw, you can see that as the tail gets longer, it accounts for more of the market. That is referred to as the « Long Tail » model. Knowing that, he applied this theory to ebusiness models. He tried to understand how he could make money out of such a model.
Spot a popular item and associate a suggestion of a non hit product.
It creates demand by introducing a unwanted nonhit product.
Couple of websites allowing unlimited access to either popular and not-so-much demanded items: As of october 2007, Itune Music stored over 5 millions titles, so we can assume it is now between 6-7 millions titles available on line source: http://fr.wikipedia.org/wiki/ITunes_Store Dailymotion counts with hundreds of thousands of videos available, with an average of 15, 000 new videos uploaded on a daily basis (as of May 07). Source: http://fr.wikipedia.org/wiki/Dailymotion
Couple of websites allowing unlimited access to either popular and not-so-much demanded items (con't) I believe Itunes understood rightly how to use the Long Tail model to make money. For instance, it made easier the search for new music by creating in the music store a window on the right, suggesting « songs we might like ». Thus, it helps us find unwanted songs and induces us to expand our demand