When the Hits Aren’t Hitting Hard Enough: Music & Money in 2016 (Blog Post #1)

In 2004, Chris Anderson coined the term the ‘long tail,’ which can be described as such: “products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, but only if the store or distribution channel is large enough” (Investopedia). Essentially, the long tail holds the ability to capture niche audience segments with diverse tastes at lower costs. At first, I did not realize the article was written in 2004! After knowing this fact, I was able to grasp why he didn’t mention some business services, particularly music services that have taken full advantage of the long tail.

Anderson argues that there is demand, albeit small, for ‘non-hit’ products (movies, songs, etc.) and mentions a few platforms that existed in 2004 that catered to these small audience segments. For example, at the time, Netflix was allowing customers to rent DVDs from home. Look at what progress Netflix has made! Anyone, anywhere in the world can stream any obscure movie that Netflix offers right from his or her laptop. Additionally, Anderson mentions that a music server that can stream songs on demand would be “another nail in the coffin of the retail music model.” What has since been created and proven to be one of the most popular subscription services? Spotify. These businesses have diversified what is typically thought of as ‘mainstream’ and has allowed others who are not so keen to the ‘hits’ culture to enjoy music services at a fraction of what one would pay for an entire album at Target. What did the popularity of Spotify mean for iTunes, Apple’s baby? Apple created ‘Apple Music’, which is Apple’s version of a streaming music service that doesn’t seem to have proven so popular.

So, is the hits culture still as thriving as it was in 2004? Has the culture just moved platforms? Well, Blockbuster went bankrupt. VCR players aren’t even made anymore! It seems that the ‘mass market’ and ‘hits culture’ of yesteryear is no longer holding its own. As more and more businesses find an increasing feasibility in going digital and breaking physical barriers, we may not have some of the same stores in a decade. For example, Barnes and Nobles may move entirely online if the printed book market ceases to be profitable!

For more context, here is a video of Chris Anderson discussing the long tail of the music industry: https://www.youtube.com/watch?v=WPmJoucUXNY