THE LONG TAIL THEORY

The theory

The niche

The niche

• So more than 40,000 documentaries have been released, according to the internet Movie Database, of those, Amazon.com carries 40%, Netflix stocks 3 percent, and the average Block buster just .2percent.

The cost

The Retail Models

More On Retail Models

• The biggest part of this in the long tail sense is the digital catalogues that Amazon amongst others carries out with the online catalogue they are able to sell niche products to hundreds of people maximizing profits…. And with no walk in customers they are able to greatly expand the number of products they can sell.

Sales Rankings

Sales Rankings

• So as wired said just as lower prices can entice customer's down the long tail, you also get recommendation engines driving them to obscure content they might not find otherwise. This and image before shows just how the obscure content being sold within the long tail theory really maximizes the sales of said product an profit gathered from these sales.

What We Learnt

• . That long tail opens up the market for niche products • That long tail maximizes the profit for companies selling the

products.• Long tail allows a larger consumer base

• and allows a larger capacity to store more products.

• These are all subject to the plat from used by companies such as Amazon. But long tail can also be used in other areas such as travel see (http://longtail.typepad.com/the_long_tail/)