The long tail
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The document discusses Chris Anderson and his concept of the "Long Tail". It describes how Anderson coined the term in 2004 to refer to the large number of unique products available in small quantities. Specifically, it notes that Anderson was the editor of Wired Magazine and later wrote a book expanding on the long tail theory. The theory holds that with a large virtual shelf space, retailers can offer more products in less demand or "niche" markets, as opposed to just focusing on popular hits. This allows businesses to profit from less popular products in addition to hits. The document provides examples of how this theory applies to industries like online music, movies, and books.
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Bureau of Statistics, China’s
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year 2025, the total market
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decisions.
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trillion (US$210 billion) in 2020.
It is estimated that by the
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trillion (US$1.035 trillion).
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Mediaintheonlineage
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Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organisational structure created in the 20th century cannot survive when new digital solution are being offered. The hierarchical structure of these established companies assumes high coordination cost due to human activity. But when the coordination cost drops
The organisational structure that companies in the 20th century established was based on the fact that employees needed to do all the work. The coordination cost was high due to the effort and cost of employees, housing etc. Now we have software that can do this for use and the coordination cost drops to close-to-zero. Another thing is that things become free. Consider Flickr. Anybody can sign up and use the service for free. Only a fraction of the users get pro account and pay. How can Flickr make money on that? It turns out that services like this can.
Many businesses make money by giving things away. How can that possibly work? The music business has suffered severely with digital distribution of content. Should musicians put all there songs on YouTube? What is the future business model for music?
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4. Review the completed paper and authorize full payment if satisfied, or request free revisions.
5. Know that multiple revisions are allowed to ensure satisfaction, and HelpWriting.net guarantees original, high-quality content or a full refund.
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The long tail
- 2. ChrisAnderson The LongTail term Coined by ‘Chris Anderson’ in 2004 inWIRED magazine. Editor in chief ofWired Magazine. Later he expanded by writing a whole book in 2006 “The LongTail: Why the Future of Business Is Selling Less of More”
- 3. Introduction (LongTail).. The concept drew in part from a February 2003 essay by Clay Shirky, "Power Laws, Weblogs and Inequality“ 80/20 rule: roughly 80% of the effects come from 20% of the causes by Pareto.
- 4. Introduction (LongTail).. Long tail is more about Misses than Hits. It supports niche markets. Its all about internet. From scarcity to abundance. The LongTailTheory describes how the Internet has influenced economics, commerce and consumption. Popularity no longer has a monopoly on profitability.
- 5. 2,300, 000 130,00 0 Amazon Barnes & Noble Total Inventory (books) 735,00 0 39,000 Rhapsody Walmart Total Inventory (songs) 25,000 3,000 Netflix Blockbuster Total Inventory (movies) The LongTail:The LongTail and the Internet 80/20 Rule and LongTail Source: Anderson, C. (2006) “The LongTail: Why the Future of Business is Selling Less of More”
- 6. The LongTail: Three Forces Force 1: Democratize the tools of production Force 2: Democratize the tools of distribution Force 3: Connect supply and demand Source: Paul Fox, 2006
- 7. Force 1: Democratize the tools of production
- 8. Force 2: Democratize the tools of distribution
- 10. How search engines work? (The Paradox ofChoice)
- 11. The “Long tail” rules Make everything available, no rejections Help people find it, with filters Lower the costs Let customers do most of the work One distribution and filter method cannot fit it all One price does not fit all One category does not fit all Share information Recommendation
- 12. Example: Film Industry The Head is a high street film retailer such as Blockbuster.The LongTail is an online film distribution service such as Neftlix.Source: Lucy Richardson and Emma Sugarman
- 13. Example: Film Industry (contd..) This means that high street shops (the Head) that sell films are gradually becoming less popular due to the restrictions they experience in terms of shelf-space. Internet retailers (the LongTail) do not experience this as they do not have a physical shop.Their unlimited space shelf allows them to provide for niche markets, increasing their customers as they have a wider variety of products. The Head may contain: Cinema chains such as Cineworld, Odeon; film retailers such as HMV, Blockbuster etc. The LongTail may contain: Internet sites such as Netflix,YouTube, LOVEFiLM etc.; iTunes etc. Due to the growing accessibility of the Internet, more and more films are being downloaded online rather than bought in the shops.
- 14. Example: Film Industry (contd..) Advantages: Films are more available online, increasing views and popularity. Facilities such as film forums allow customers to give feedback, helping the film industry to improve. People can narrow down their choices of film via filtering services. Customers can see what films are similar to those that they like, broadening target audiences for other films. Recommendations.
- 15. Example: Film Industry (contd..) Disadvantages: Illegal downloads. High street shops lose sales as customers resort to online purchases. The atmosphere of going to the cinema is lost.
- 16. Sources LinkedIn (SlideShare) Google.com Wikipedia Chris Anderson Book:The LongTail:Why the Future of Business Is Selling Less of More TED talk by Chris Anderson YouTube videos
- 17. Thanks