The long tail effect suggests that the internet makes it easier to distribute items and products, this will then entail a shift from the most popular products being at the head or centre of the public eye and demand to a number of small niches being increased. So overall we a shifting our focus onto a small number of specific niche markets.
The digital market – Amazon, Spotify, iTunes and Netflix – allows for an unlimited amount of choices for the public with no restraints.
Amazon is a great example of the long tail effect in action as they are one of the world’s most successful e-commerce website. Through using the theory of the long tail effect Amazon holds an advantage over other competitors which makes them the most powerful and popular sites in the world today.
Amazon holds a wide range of products, from DVD’s to CDs, games, books and general products. Through including niche products through these categories it gives amazon the ability to sell their products to a wider audience. What’s interesting about this is the fact that Amazon finds most of its money supplying items to the hundreds of niche markets compared to copies of ‘popular’ items from their best selling range.
Other sites like Spotify and iTunes are also making money from the long tail theory as they are supplying their customers with growing and extending content. In doing this it allows for customers all around the world to access their niche markets just as simple as finding the ‘top 10 pop chart’ songs.
Netflix also involves this theory somewhat with the availability to stream movies from their site. Netflix holds quite a decent amount to DVD titles from a respectable spread of categories as well as films which may be been discontinued from other rival companies. However, Netflix doesn’t apply the long tail effect as effectively as the other digital markets that were discussed. This would be because the movies which are added to the site are somewhat restricted to viewers based on where they live in the world due to copyright and what not. In doing this, Netflix limits itself in a way and hinders its expansion. Netflix has a great opportunity to make itself one of the world’s most successful business, its possibilities are endless, however, in doing what they are doing they are shooting themselves in the foot.
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- Name (2007) Step 2: Examples of the Long Tail theory?Available at: https://tombobadoodle.wordpress.com/step-2-examples-of-the-long-tail-theory/ (Accessed: 20 October 2016).
- Rethinking the Long Tail theory: How to define ‘hits’ and ‘niches’ – Knowledge@Wharton(2009) Available at: http://knowledge.wharton.upenn.edu/article/rethinking-the-long-tail-theory-how-to-define-hits-and-niches/ (Accessed: 20 October 2016).