Long Tail and Chill

Chris Anderson’s article explaining the long tail was extremely enlightening and although he wrote the article in 2004, there are still some eternal truths that could be applied today in 2016.

In summation, Anderson believes in a digital economy there is no such thing as too much. That the analog of media sees “hits” as the only profit makers due to scarcity in physical space. Anderson argues that in a digital economy the “misses” also have a profit because there is an abundance of shelf space. Moreover, Anderson’s three rules  of utilizing the long tail can be used today.

Rule 1: Make everything available

Rule 2: Cut the price in half. Now lower it.

Rule 3: Help me find it

All three can be used in my everyday life as a consumer. In respect to my major, journalism, I’ll tell you a story as to how this is true.

I, Alexiz thoroughly enjoy documentaries (as mentioned in the article). I honestly do–they’re thought-provoking, insightful and the list goes on so where can I find a constant stream provider of all things movie and TV? Netflix. For just $7.99 a month I can watch all the documentaries to my little heart’s content (Rule 1 and 2). Alternatively, I could go to a rental video store back home in my suburb near Dallas, which I should add is going through some financial trouble, and rent about two documentaries for 5 days. Now Anderson’s rule 3 is what allows me the consumer and the supplier to deepen our relationship. Let’s say after binge-watching and finishing CW’s The Vampire Diaries that I just can’t seem to get out of bed and decide to emotionally invest in another series. As I go back to the homepage there are a “Top Picks for Alexiz” section and voila! Netflix now has a plethora of suggestions as to what else I might enjoy based on my affinity to The Vampire Diaries. It could be something as mainstream as Gossip Girl or a little more obscure like The Secret Circle, which was cancelled after one season because of its poor viewership (Rule 2). 

Finally, I’d like to add that while rule 2 might seem a little scary for suppliers to cut prices, Anderson notes that cutting prices allow the consumer to buy more. If songs were between 20 to 79 cents I’d forgo my Spotify account altogether, to be honest.

As Senior Fellows and potential suppliers, we need to recognize that the digital is inevitable and so should our marketing and pricing tactics.

The following is a TED talk about the future of TV in respect to streaming services like Netflix and Hulu.