BCM206 The Long Tail

The Long Tail

The 20th century heavy relies on data basics such as Google, Netflix and Amazon. The economic culture has changed drastically. Numbers plays a huge role in the power laws. It is a notion of a small number things had a large impact; low frequency is high amplitude of events, thus power of Distibution.  

Legacy media, the hit-driven model which is a “think blockbusters” is believes that the lowest common denominator always wins as there is a cost of entry, limits of scale and risk impose to business. Therefore, niche market will always remain so-called undiscovered as mass-market will always win as there is a poor supply-and-demand matching which results an inefficient distribution market responds. This is the world of scarcity. Now, with online distribution and retail, we are entering a world of abundance. And the differences are profound (Anderson, 2004)  

Pareto’s principal also known as the 80-20 rule is around us, such as 20 percent for TV shows, mass market, games and books. In the entertainment industry, 20 percent is focus on hits not sales. However, it is 99 percent because top 10,000 tracks demand nearly every one of those. Our assumption in the hit-driven model is that if a product is not a hit, no money will generate therefore no return of cost production; only hit deserve to exist. Undiscovered niche may not have shelf space to pay however it takes digital service to its advantage like iTunes because there is no manufacturing cost and hardly any distribution fee thus its miss sold is just another sale with the same margin as a hit because economically, a hit and a miss are equal. Power Law demand curves has a huge appeal for the top tracks then tailing off quickly for less popular ones.  

The Long Tail demand curve

Therefore, new rules for the new entertainment economy was formed. Make everything available. The Long Tail approach, by contrast, is to simply dump huge chunks of the archive onto bare-bones DVDs, without any extras or marketing (Anderson, 2004). It is expensive to evaluate than to release.  Any product is worth offering on the off chance as it will find a buyer. Secondly, cutting the price in half then lower it. Both worlds will continue to exist in parallel, but it’s crucial for Long Tail thinkers to exploit the opportunities between 20 and 99 cents to maximize their share. By offering fair pricing, ease of use, and consistent quality, you can compete with free (Anderson, 2004). 


Anderson, C. (2004). The Long Tail. Wired. Retrieved from: 


Kane, L. (2019). The Attention Economy. Nielsen Norman Group. Retrieved from: 

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