See:
http://www.wired.com/wired/archive/12.10/tail.html
http://longtail.typepad.com/the_long_tail/
http://www.amazon.com/gp/product/1401302378
From a review of the book:
Quote
The long tail is the colloquial name for a long-known feature of statistical distributions that is also known as "heavy tails", "power-law tails" or "Pareto tails". In these distributions a high-frequency or high-amplitude population is followed by a low-frequency or low-amplitude population which gradually "tails off". In many cases the infrequent or low-amplitude events--the long tail--can cumulatively outnumber or outweigh the initial portion of the graph, such that in aggregate they comprise the majority. In this book the author explains how due to changing technology it is now not only feasible but desirable in business to cater to the "long tail" of this curve.
The author explains how in traditional retail, you have the 80/20 rule, with 20 percent of the products accounting for 80 percent of the revenue. Online, instead, he sees the "98 percent rule." Where 98 percent of all the possible choices get chosen by someone, and where the 90 percent that is only available online accounts for half the revenue and two-thirds of the profits. He also explains how filters and recommender systems that help people find what they are really looking for are crucial ingredients. Thus, in a nutshell, Anderson's theory is that mass culture is fading, and being replaced by a series of niches. Thus the subtitle of his book, "Why The Future of Business Is Selling Less of More."
The author explains how in traditional retail, you have the 80/20 rule, with 20 percent of the products accounting for 80 percent of the revenue. Online, instead, he sees the "98 percent rule." Where 98 percent of all the possible choices get chosen by someone, and where the 90 percent that is only available online accounts for half the revenue and two-thirds of the profits. He also explains how filters and recommender systems that help people find what they are really looking for are crucial ingredients. Thus, in a nutshell, Anderson's theory is that mass culture is fading, and being replaced by a series of niches. Thus the subtitle of his book, "Why The Future of Business Is Selling Less of More."
Today the wall street journal posted an interesting rebuttal opinion piece:
http://online.wsj.com/pub...SB115387606762117314.html
Both the original article and rebuttal are well worth a read.
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