The Long Tail - Summary

Aniruddha Ray

The Three Forces

Force Business Example

Democratize production

Toolmakers,Producers

Digital Videocameras, Desktop Music and Video Editing SW, Blogging tools

Democratize distribution Aggregrators

Amazon, eBay, iTunes, NetfFlix, Youtube, Wikipedia

Connect Supply and Demand Filters

Google, Blogs, Rhapsody,Recommendations, Best-Seller Lists.

The Rules – Rule 1

• Think Niche Move Inventory Way In….Or Way OutLet Customers Do The Work

• Think Niche One Distribution Method Doesn't Fit All

One Product Doesn't Fit All

One Price Doesn't Fit All

• Lose Control Share Information

Think "And", Not "Or"

Trust The Market To Do Your Job

Understand The Power Of Free

Theme - One

In virtually all markets, there are far more niche goods than hits.

The ratio is growing exponentially larger as the tools of production become cheaper and more

ubiquitous.

Theme - Two

The costs of reaching those niches is now falling dramatically.

Thanks to a combination of forces including digital distribution, powerful search technologies and a critical mass of broadband penetration, online markets are resetting the economics of retail.

Thus in many markets, it is now possible to offer a massively expanded variety of products.

Theme - Three

Simply offering more variety, however, does not shift demand by itself.

Consumers must be given ways to find niches that suit their particular needs and interests.

A range of tools and techniques - from recommendations to rankings - are effective at doing this.

These "filters" can drive demand down the Tail.

Theme - Four

Once there's a massively expanded variety and the filters to sort through it, the demand curve flattens.

There are still hits and niches, but the hits are relatively less popular and the niches relatively more so.

Theme - Five

All those niches add up.

Although none sell in huge numbers, there are so many niche products that collectively they can comprise a

market rivaling the hits.

Theme - Six

Once all of this is in place, the natural shape of demand is revealed, undistorted by distribution bottlenecks,

scarcity of information, and limited choice shelf space.

What’s more, that shape is far less hit-driven than we have been led to believe. Instead, it is as diverse as the

population itself.

Filters Explained – Pre and Post

Pre-Filters Post-Filters

Editors Bloggers

Record Label Scouts Playlists

Studio Execs Reviews

Department Store Buyers Customers

Marketers Recommendations

Advertisers Consumers