Chris Anderson initially worked as an editor at The Economist and Wired Magazine. In 2004, he wrote about the long tail theory in his blog, which was later expanded into a book. The long tail refers to the statistical distribution where a few popular items are followed by a large number of less popular items. In business, it means that many less popular products can collectively make up a significant market share when distributed online without physical limitations. Anderson argues that the internet allows companies to profit from these neglected "misses" or niche products in the long tail, moving from an economy driven by a few "hits" to one with more diversity.

1. Presented
by
Waseem khan

2. Chris Anderson
 Initially, Anderson was the U.S. business editor of
The Economist
 In 2001, Anderson became the editor in chief of
Wired Magazine
 In 2004, Anderson wrote a blog on the Long Tail
Theory
 In 2006, Anderson’s blog on The Long Tail later
expanded into a book titled…

3. The Long Tail: Why the Future of
Business Is Selling Less of More

4. What is long tail?
 A high-frequency population is followed by a low-
frequency population which gradually "tails off." In
many cases the infrequent events—the long tail,
can cumulatively outnumber the initial portion of
the graph, such that in aggregate they comprise
the majority.

5. The Long Tail applied to business
In Mathematics
The name for a statistical distribution
curve based on a high amplitude
population followed by a low
frequency population which gradually
tails off.
- Wikipedia
In Business
Products that are in low demand that can
collectively make up a market share that
rivals the relatively few current bestsellers
when distributed over such a big channel as
the Internet. - Chris
Anderson

6. The “Hits”
What happens to these “misses” in the
marketplace?...

7. The Economics of Scarcity
 According to Anderson, the 20th century
entertainment industry was all about the “hits”
 Hit-Driven Economy: “A creation of an age without
enough room to carry everything for everybody”
(Anderson, Pg. 2, 2004)
 Therefore, the lack of physical space to carry all the
“hits” and even “misses” leads to the Economics of
Scarcity

8. The World of Abundance
 With online distribution, products are no longer
limited by physical shelf space
 According to Anderson, “the 21st century will be
equally about the misses” (Anderson, 2004, Pg. 1)
 Companies such as Netflix, Amazon and Rhapsody
have recognized this growing demand for niche
market items and alternative selections that they are
profiting from these “misses” in the marketplace

9. The Long Tail

10. The Power of The Long Tail
New rules for the New Entertainment Industry:
Rule 1: Make everything available
Rule 2: Cut the price in half. Now lower it.
Rule 3: Help me find it
The Benefits of the Long Tail:
 Adds more diversity to our marketplace
 Reduces the issue of Economics of Scarcity
 Deters us from a “Hit”-driven economy

11. THE END
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