Long tail theory

Author: Chris Anderson (USA)
Translator: Qiao Jiangtao
United States/America
Publisher:
Publish Date: 2006-12-01
Features: ★ Ranked in the top three on Amazon's bookstore list ★ Ranked in the top three on the bestseller lists of The Wall Street Journal and The New York Times ★ Recommended by Eric Schmidt, CEO of Google; Jerry Yang, co-founder of Yahoo; and Terry Semel, CEO of Yahoo ★ Called "The Most Important Idea of 2006" by GQ magazine ★ Awarded "Best Idea of 2005" by U.S. Business Week ★ Copyrighted in 13 languages to date
"You can clear your bookshelf of all new economy books—just have The Long Tail enough!"
What is the Long Tail Theory? The book explains that the future of business and culture does not lie in the head of the traditional demand curve, representing "blockbuster hits," but in the long tail, representing "misses" that are often overlooked. For example, a large bookstore typically stocks 100,000 books, but a quarter of Amazon's book sales come from books ranked after 100,000. The sales proportion of these "misses" is growing rapidly, estimated to account for half of the overall book market in the future. This means that when faced with unlimited choices, what consumers truly want and the channels to obtain it have undergone significant changes, giving rise to a new business model.
Is the Long Tail Theory everywhere? The application of the Long Tail Theory is not limited to the internet and entertainment media industries. Traditional market curves follow the 80/20 rule, and we battle fiercely to capture the 80% profit from blockbuster products. However, our so-called "hot" products are becoming increasingly misaligned with reality. For instance, the ratings of prime-time television shows have been declining for decades. If we were in 1970, today's top programs might struggle to even make the top 10. In short, while we remain obsessed with big hits, their economic power has diminished. So, where have those fickle consumers turned? The answer is not unique. They have scattered in all directions because the market has fragmented into countless different niches. The rise of the internet has changed this dynamic, giving 99% of products a chance to be sold. The long tail of the market curve (so-called niche products) has also turned the tide, becoming a new source of profit we can count on.