Friday, June 24, 2005

Economics of the Long Tail

Economics of Atoms
To justify their shelf space and distribution costs, products must appeal to lots of people where they're offered.

You'll need concentrated geographic demand to justify the product taking up space on the shelf. It's the tyranny of geography. The consequence is: lowest common denominator.

BY COMPARISON

The economics of bits
Virtually unlimited capacity
Virtually free distribution
You go for a very customized model: niches can be niches, and people can be addressed as individuals.

Chris was saying he's done so much data-crunching, he ran out of the Excel table rows!

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