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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/)

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Presentation1 pecha

  • 1. THE LONG TAIL THEORY
  • 4. 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.
  • 7. 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.
  • 9. 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.
  • 10. 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/)