Wednesday, April 13, 2005
The Long Tail of TV and Coming IP TV Revolution
Posted by Chris Gohlke in "ARTICLE" @ 04:00 PM
"I'm a big fan of WIRED editor Chris Anderson's Long Tail thesis and his blog about the subject. The gist of it is that while a handful of popular shows/songs/movies make up the bulk of revenue for entertainment companies, often 50% or more of their total revenue can come from many people finding the less popular stuff, or the long tail. Thanks to various technologies enabled by the internet, like Amazon, Netflix, iTunes Music Store, it's now easier than ever to find that one old movie, song, or show you really loved and buy it (Amazon, NetFlix and iTMS all contain inventories no physical store could ever match)."
I agree, entertainment giants have focused more on the easy high demand properties. This makes sense since there is a certain fixed cost involved in any CD/DVD release that will need to be recoverable to make the release profitable. Pure digital distribution over the internet should drastically reduce the fixed costs and possilbly eliminate the middleman allowing the entertainment industry to make a profit from more niche products.
I agree, entertainment giants have focused more on the easy high demand properties. This makes sense since there is a certain fixed cost involved in any CD/DVD release that will need to be recoverable to make the release profitable. Pure digital distribution over the internet should drastically reduce the fixed costs and possilbly eliminate the middleman allowing the entertainment industry to make a profit from more niche products.
