Brooks's Reviews > The Long Tail: Why the Future of Business Is Selling Less of More
The Long Tail: Why the Future of Business Is Selling Less of More
by Chris Anderson (Goodreads Author)
by Chris Anderson (Goodreads Author)
I heard a clip on this book on NPR back in August and have had wanted to read this book for sometime. When I first heard about this book, we were having a conflict with one of our e-commerce customers. There SKU base kept growing and my boss kept saying they did not control their inventory. Well, here is proof positive that they did know what they were doing. The book is written by an editor of Wired magazine. The basic premise is that with infinite variety and reduced (and in many cases zero) distribution costs, the non-hits are where the future of profitability in business. Basically, you need low distribution/production costs (democratize production), high amount of content (democratize distribution – aggregators like Amazon and iTunes), and filters to support decision making. Some good quotes, :Walmarts shelves are a display case a mile wide and twenty-four inches deep. At first glance that may look like everything, but in a world that’s actually a mile wide and a mile deep, a veneer of variety just isn’t enough.” Why isn’t WKRP in Cincinnati out on DVD – licensing for all the classic rock that was fundamental to the TV show that can not be license for the DVD. Why is it so hard to find new releases on Netflicks. Because the Studios have a sliding scale on DVD prices that actually decrease by MONTH. So, $20+ in the first two months and sliding out to $10 by 18 months. Statistics – Average blockbuster store has 3K DVDs while NetFlicks has 60K. Average Borders has 100K books, while Amazon has 3.7M books. Walmart has 3500 CDs (or 55K songs) and Rhapsody has 1.5M songs. Internet retail is about 5% of American retail spending, but growing 25% per year. Another good point, with more options, you have a better chance to be more satisfied and also a better chance to be very unsatisfied. More options does mean more crap, but also more gems. Netflicks allows people who do not live in a university town to see foreign and independent films.
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