Tuesday, 22 March 2016

Chris Anderson's Longtail Theory

- In 2013, iTunes sold over 25 billion songs.


- Anderson suggests the ITunes is a prime example of business that is taking advantage of the new entertainment economy as it embraces the long tail along with the big hits. This is a quote from Anderson in 2004 - “With no shelf space to pay for and, in the case of purely digital services like iTunes, no manufacturing costs and hardly any distribution fees, a miss sold is just another sale, with the same margins as a hit. A hit and a miss are on equal economic footing, both just entries in a database called up on demand, both equally worthy of being carried.”


- By selling the mainstream hits and attracting costumers, the iTunes store uses the hits to recommend and raise more of an interest to the unpopular songs in the Long Tail.

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