The Long Tail Theory - Chris Anderson

'Our culture and economy are increasingly shifting away from a focus on a relatively small number of hits   (mainstream products and markets) at the head of the demand curve, and moving forward into a huge number of   niches in the tail. In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly targeted goods and services can be as economically attractive as mainstream fare.' - Chris Anderson (2006)

 

The point Anderson is making about shelf space, is that during the days of purchasing CD's, DVD's and books, many shops would not consider stocking more than one copy of loads of CD's, DVD's or books. They would keep stock of better selling products, and given the option to order other products from a warehouse. The Internet can now be seen as a warehouse, where any product can be purchased. There are fewer overheads associated with niche distribution, which means that 'infinite choice' becomes an essential commodity.

 

'All those niches add up. Although none sell in huge numbers, there are so many niche products that collectively they can comprise a market rivalling the hits. Once all of this is in place, the natural shape of the demand is revealed, undistorted by distribution bottlenecks, scarcity of information, and limited choice of shelf-space. What's more, that shape is far less hit-driven than we have been led to believe. Instead, it is as diverse as the population itself.' - Chris Anderson (2006)

 

Here, Anderson is arguing that broadband has allowed the population to behave in ways that fit better with instinct. Before Web 2.0, the population did not have sufficient access to the certain things, therefore taste was channelled for commercial ends by elite producers who wanted to consume more of less. Now the population is able to choose from 'infinite variety', there are profitable margins, shareholders and rich people exploiting the 'value chain' - there is also a democratising effect: in the world of the long tail,the niche is the Queen and she has potentially a limitless choice of places to purchase from.