Winetta Lee's Presentation "The Basic Principles of the Long Tail" looks at Chris Anderson's theory of the Long Tail. The presentation explains the 80/20 rule, what happens when the market moves from scarcity to abundance and what the Long Tail means for the entertainment industry.

1. PUB 355 The Concept of the Long Tail Theory Presented by Winetta Lee

2. Chris Anderson Initially, Anderson was the U.S. business editor of The Economist In 2001, Anderson became the editor in chief of Wired Magazine In 2004, Anderson wrote a blog on the Long Tail Theory In 2006, Anderson’s blog on The Long Tail later expanded into a book titled…

3. The Long Tail: Why the Future of Business Is Selling Less of More

4. Pareto Principle – 80/20 Rule

5. The “Hits” What happens to these “misses” in the marketplace?...

6. The Economics of Scarcity According to Anderson, the 20th century entertainment industry was all about the “hits” Hit-Driven Economy: “A creation of an age without enough room to carry everything for everybody” (Anderson, Pg. 2, 2004) Therefore, the lack of physical space to carry all the “hits” and even “misses” leads to the Economics of Scarcity

7. The World of Abundance With online distribution, products are no longer limited by physical shelf space According to Anderson, “the 21st century will be equally about the misses” (Anderson, 2004, Pg. 1) Companies such as Netflix, Amazon and Rhapsody have recognized this growing demand for niche market items and alternative selections that they are profiting from these “misses” in the marketplace

8. The Long Tail

9. The Power of The Long Tail New rules for the New Entertainment Industry: Rule 1: Make everything available Rule 2: Cut the price in half. Now lower it. Rule 3: Help me find it The Benefits of the Long Tail: Adds more diversity to our marketplace Reduces the issue of Economics of Scarcity Deters us from a “Hit”-driven economy

10. THE END Thanks for Listening!!!