The Long Tail

Have you ever been frustrated due to lack of options? I have. Growing up in a small town in Florida, only the most popular blockbusters were released in the theaters, and then six months later....the same movies were the only ones available to rent. It’s hard for New Yorkers and other city slickers to remember a time when they lacked options, but it is possible. For me, relief came in 2001 with the invention of Netflix, which allowed me to rent films online from a huge collection. After joining Netflix, I found myself watching movies I would have never seen anywhere else...indies, cult flicks, documentaries, tv series on DVD, and even movies with gay characters.
My history of movie watching and Netflix is an example of the positive effects of The Long Tail. The Long Tail describes products that are not “most popular,” and therefore don’t sell well without a quality distribution channel- like the internet. What is amazing about The Long Tail effect is that when enough “unpopular” products are marketed over the internet, they become more profitable than their “popular” counterparts. For example, once I fell in love with independent films on Netflix, I never ordered mainstream or “blockbuster” films from the service again. I was so engaged with indies that I had absolutely no interest in watching another film where Sandra Bullock plays a model/detective/alcoholic/mother/bus driver.
The Long Tail has many positive social and economic effects. Through the internet, various “niche” products can be distributed to a mass market. Physical retailers (non-internet) will only carry products that can generate sufficient demand and therefore make profit. This lowers the amount of selections available, because the only products sold are the ones that appeal to a mass audience. Luckily, this is changing due to the internet, which is the most powerful distribution channel imaginable. Services like Amazon.com or Ebay.com are great examples of internet distributors that have created The Long Tail. These services have proved one thing: people want all sorts of products, not just best sellers. Industries don’t care what customers want, they are only concerned with making profit. What is amazing is that people want products on The Long Tail. Have you ever heard “one person’s trash is another one’s treasure”? I think Ebay.com has proved this correct, by selling myriad products (most of which would normally be considered unmarketable) and making large profits. Chris Anderson, the man that coined the term, says it best “ Combine enough nonhits on the Long Tail and you've got a market bigger than the hits.”
In regards to organizations, online business have greatly profited from The Long Tail. In comparison to a retail store, the internet is a cheap distribution channel. Companies that have utilized the net’s capabilities, such as Netflix and Ebay, are constantly growing and profiting. Christopher Carfi discusses in his blog post that The Long Tail brings profits because it offers the customer personalization. No longer do they have to chose from only mainstream options, the customer can have exactly what they want. Companies must become aware of this, because many are losing money due to The Long Tail. Mainstream products are making less money than products on the tail, which really alters the definition of “mainstream.”
In Jill's post "Gotcha By The Tail," she reflects on how efficient the internet is for marketing products. For another view, check out Meghan's post "Wag Your Tails Everyone"