Wednesday, November 14, 2012

The Long-Tail Economy: An Inspiring Concept

A model for online retailing/entertainment industries: Amazon, iTunes, YouTube, and Netflix.

Unlimited shelf space: From "hits vs. misses" to seemingly unlimited choices


The death of distance: Easier to get a critical mass in a much larger geographic market 

Tools for content access: Search, algorithm-based recommendations, user reviews

Controversy:

Does the availability of options and navigation tools shift consumption from the head to the tail?

Some argue that the greater choice, navigability, and searchabilty will actually strengthen the hits relative to the niche products!


Empirical evidence:
 
http://www.youtube.com/charts/videos_views?gl=US&t=a

http://www.youku.com/v_showlist/t2c0g0d4.html

Therefore, it is NOT any easier to be a niche content producer financially than it was in the old media environment. 

Three business models for online music in practice:
  • iTunes
  • Pandora
  • Spotify
Pandora vs. Spotify
http://mediadecoder.blogs.nytimes.com/2012/08/24/pandora-and-spotify-rake-in-the-money-and-then-send-it-off-in-royalties/

Who Really Profits from Your iTunes Downloads? http://www.investinganswers.com/personal-finance/rich-famous/who-really-profits-your-itunes-downloads-3818

Implications of audience segmentation for ad-supported media

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