Doubts Multiply About the "Long Tail"
fruey sends in a New Scientist analysis of the many second thoughts about the Long Tail theory. It summarizes four studies that show, in different markets, that the tail is both flatter and thinner than originally supposed, and that blockbusters are not going away in those markets — they are getting bigger. It's theorized that widely used collaborative filtering software is magnifying the winners' share of the various pies, and peer influence is a large contributor to consumer behavior.
Looks like he got his long tail, but I don't know why anyone would expect Harry Potter to sell less simply because someone could chose to get some out-of-print book or the like. Fill Barnes and Noble with shitty fantasy that will never sell and HP will still break records. The Internet can't change that.
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What is the long tail? The summary, and TFA (I skimmed it so maybe I missed this) seem to indicate that the long tail theory means the more obscure stuff will be more popular. I thought it simply meant that you could make money off the obscure stuff when your distribution costs went to zero (because of the Internet). Am I missing something, or does the article interpret the idea of the long tail incorrectly?
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A summary that told me so much, yet so little.
"Long Tail theory" No idea. Apparently I missed an article somewhere.
"flatter and thinner" I gotto admit, tails in an evolutionary sense popped to mind here for some reason. Though the mention of markets made that an obvious red herring.
"blockbusters are not going away" Aha, movies!
"widely used collaborative filtering software is magnifying the winners' share of the various pies" Say what?
Of course they want to sell you new media. Old media has the unfortunate quality of being old. Should copyright extension insanity ever end, old content is closer to becoming free content.
If they can induce you to fill your time with new, "premium" content by splashing adverts at you and skewing selection algorithms on Amazon and the like, they will prefer to every time. New stuff commands a higher price. New stuff has higher margins. New stuff keeps the media industry running, and they have clout.
Old stuff is, like, yesterdays stuff. Even if it's better.
What the hell was that? Mattel's "My First Summary"?
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It's pretty silly to expect that everyone is going to change their behavior immediately due to increased availability of a larger variety of goods. When cable came along and people were given a larger amount of choice of television programming viewing habits didn't change overnight, they changed over decades.
People are creatures of habit. It'd be more interesting to see if the variety of goods people buy varies with age. If so, expect that "long tail" to eventually appear as the population turns over.
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OTOH, it is clear that the way to make a lot of money as a retailer is to have the popular options at a low price, a la Wal Mart. As the article suggests, though, have a few niche items can make money, if you can get people to pay for therm.
Here is what I think. Stocking an item, even a virtual item, incurs a cost. So if one stocks a million different items, and only one thousand different items moves a week, then there are costs not being covered on an even yearly basis. One way to make this work it mark up items a lot, as in the used book store, wher a book can be bought for a dime and sold for a dollar.
To me the long tail means either selling in a high markup niche market, or having the ability to control costs so you can sell less of more different things and actually draw a profit. In either case, the long tail in going to be chanllenged in times that force are going to force some fiscal responsibility, and people are going to focus on necessities and cheap luxuries.
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from the comments, the "long tail theory" is misunderstood by most slashdotters (at least, the few who are showing up today, most of whom, it seems, are in my "freaks" list judging from the comment moderations).
TFA was incredibly bring and unnecessarily wordy, as if the author had little to say and vast tracts of text to say it in.
Wikipedia refers to:
Obviously it's not referring to a boat or telecommunbications traffic. What it does refer to is a statistical curve on a graph. Take IQ. If your IQ is 100, you are on the top of the bell curve, the median. If your IQ is over 150 you are close to the extreme end of the "long tail".
The theory is that if you have warehousing costs, it isn't profitable to stock items that don't sell well. On the other hand, if your warehousing costs are zero, any sale is profitable.
The article (what I read of the boring thing) didn't say much of anything except "stuff one person will buy won't outsell stuff millions of people will buy"
In short, DUH. hardly profound.
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are you going to sit at your computer and listen to every sample iTunes has to offer and pick out the ones you like best, or are you just going to buy what your friends recommend?
One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
I stopped buying CDs when the music companies started sueing their own customers.
You too? I thought I was the only one. I rarely bought music in the past, then downloaded a few songs which I would never have paid for but just wanted to hear. Then the RIAA started with their crap and I stopped listening to it all. There's nothing like being blamed for their crappy product. I mean, have the major labels actually put out that much good music in the last 10 years to even download? It seems like the bar has gotten awfully low.
As far as the "long tail" theory, I'm surprised that it was accepted that much at the time. Anderson sounded like the he had the same kind of glazed eye look about the future of the internet as the Web 2.0/Social networking people do when you talk to them.
Do people fundamentally change when they have more than one option to choose? I would have guessed rarely. Just because people have more choices does not mean they make statistically random choices. People have far greater psychological issues about what they choose and why they choose them than just availability. People like to be on the bandwagon and choose what their friends do, they like to choose things they've heard of and feel safe about, what's been recently marketed to them, comfort foods vs. healthy foods, etc.
Although we are all unique individuals following the herd, we by-and-large make the same choices about things, with a little bit of variance thrown in to keep it interesting. Raise your hand if you've never eaten at a McDonalds or drank a Coke before.
The internet may offer a wide variety of things in theory, but in reality it is businesses trying to offer customers the products that will give them the best ROI, and that means you'll make more money off the herd than a few outsiders demanding obscure products and services.
It makes sense to push items that the herd wants to buy. It makes sense to push the same things the other players are pushing and focus on better volume marketing, rather than pushing obscure things that a relatively few want and spending more money on targetted advertising.
The consumer follows the same approach as others, otherwise Walmart would not have been able to be in the position it's in.
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The markets studied in this work are notorious for being driven by short term fads. Online downloads are by predominantly ephemeral pop music, and a study of 14,000 teenagers? These are the people most influenced by peers and the 'so last week' attitude, They haven't had the time to explore and broaden their outlook.
Try getting a more diverse sample and I think that the long tail will look a lot fatter. People in their 30's and up have had time to develop far more diversified tastes and will have much more eclectic buying habits.
Pick a cohort of 14,000 boomers and you will see something very different.
There's a certain segment of the population that enjoys finding obscure stuff. I'm not sure of the size, but I'd guess it's about the same size as the introverted segment of the population, around 25%, as the two behaviors are somewhat correlated. (i.e. folks who actively stray from the herd socially are more likely to express interest in consumables that are different from the herd's preferences) So, given that assumption, the drivers of a long tail market, "funky stuff seekers," could be overpowered by the general population.
On top of that, it's my guess that researchers in this area, as researchers in most areas, tend to be "funky stuff seekers" themselves. (I mean, it's their job to search and speculate on the edge of their field of study.) So, right off the bat, there's a bit of inherent bias in interpreting the effect of their cohort on the market. In other words, they're following the non-herd herd. :)
Not exactly.
It is the hypothesis that ALL of the non-Harry Potter books COLLECTIVELY will sell as much or more than the Harry Potter books themselves.
Even that is wrong. It isn't a single book or a single series. It's the percentages. It is the hypothesis that the 80% of lesser selling titles will equal or exceed the sales of the top 20%. Or 90% / 10%. Or wherever you want to make the cut.
In theory, it is easy to demonstrate. Suppose there are 2 blockbusters released in a category ... and the average person buy 10 items in that category. So, 20% of the sales would go to the blockbusters ... but 80% would go to the "long tail".
The problem is that the average person does NOT operate that way. They might by the latest Harry Potter book ... and no other book that year. The same with music. The same with movies.
I mean, have the major labels actually put out that much good music in the last 10 years to even download? It seems like the bar has gotten awfully low.
Possibly. Or maybe you've just aged and your tastes have changed as they've become more refined (a nice way of saying you've become pickier). That sort of makes sense since you, being older now, are not the RIAA's primary target market (which tends to be in the teens, younger 20s, etc). Additionally, being older, you're also not as impressionable. A song that would have affected you at age 15 (when emotions were high, and many experiences were imprinting themselves on your mind) would barely make a dent now or may not even be noticeable.
There has been good stuff produced in the past 10 years. I know names like Britney Spears pops to mind when you think about the crap out there, but there are a lot of artists who are part of the big labels who don't get the same face or radio time for whatever reason.
Quite obviously, it must exist. The lack of evidence simply means it is an invisible tail, well hidden from the eyes of the unsuspecting public. Probably some sort of conspiracy of the short-tailed...
I would like to die like my grandfather did - sleeping. And not screaming in terror, like his passengers.
The article was generally ok, but clearly not completely understanding of what the "Long Tail" means. Of course, from what I've read (including the book itself) the interpretations and applications of the theory are rather fluid anyway.
The biggest issue I have with the article is that it seemed to be conveying that the "Long Tail" meant an end to blockbusters. It doesn't mean that at all. It just means that there's enough business in the "Long Tail" to make it profitable to sell items that weren't blockbusters given the low cost structures of Internet retailing. Amazon and iTunes both make hundreds of thousands of dollars monthly on items that only sell 2 or 3 copies. With traditional retailers, space is a limited commodity and must be devoted to items that will sell in enough volume to justify carrying them.
Now, IANAPhd, and the article quotes quite a few that seem to disagree with the idea of the "Long Tail", but it seems the evidence they discuss is rather weak. Yes, people are influenced by others in their choices. Much of this comes from the vast history of humanity and our tendency to form social groups. The Internet has yet to truly begin to change humanity in the ways that it will. The key thing with respect to the article is the definition of what our peer groups are. Despite the global nature of the Internet, most of our peer influence is local. As more and more people around the world connect and begin to actually talk to others outside their current peer groups, those peer groups will expand and change. That is going to be a key driver in generating the diversity that the "Long Tail" predicts.
The "Long Tail" is only beginning because humanity's experience with the Internet and the interconnectedness that it brings is only beginning. Just because it hasn't completely happened doesn't mean that it's not happening.
The habit (of wanting what everybody else wants) is not waning as selection and availability increase. The habit is reinforced by the increasing channels by which we can see what everybody else wants and adjust our own wants to that.
The Internet, while logistically making the long tail feasible, is socially making blockbusters bigger.
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Googling for the "long tail" in German may have unforeseen consequences.
Particularly if you do it at work.
Mit der Dummheit kämpfen Götter selbst vergebens
... also known (in a simplified form) as "Zipf's Law". The most popular word occurs twice as often as the second popular, three times the third popular, four times the fourth etc.pp.
If you look at the 10% most popular words in a table, you will notice that the absolute share of the upper 10% increases, if you count longer and longer texts with more and more individual words.
With 10 different words you get, that the first 10% make up ~34% of all words.
With 100 different words you get already ~56,5% share for the first 10% of words.
With 1000 words we have 69,2% share for the first 10%, with 10000 we come to ~76,5% share.
The internet does not increase taste. It may increase choice, but the tastes of people remain the same. If you appeal to the lowest common denominator you flood the market.
Case in point, warez sites. Troll them for 30 minutes and you'll be hard pressed to NOT find a flood of the same 10 movies, CDs, books etc. Even when stealing the product people do not go for the avant-garde or the art house, they go for the same 10 things that are hot.. NOW. Yes, you can find the other obscure stuff, but you have to dig long and hard for it. And in the end, it's the same very small circle of people that do that. The masses want what they want. It's called MASS APPEAL for a reason.
The long tail is alive and well. I think some people seem to have gotten the crazy idea that implementing it meant that you'd have an automatic win. In reality, most of the basic rules of business still apply. You still have to deliver a quality product at a fair price, you still have to provide good service and a friendly buying experience ... in short, you can't be a piece of crap e-commerce company and still expect that the world will beat a path to your door simply because you offer a huge selection. Amazon got it right. iTunes got it right. The basic premise of Long Tail still holds water: if you can connect a near-infinite number of buyers with a near-infinite number of selections, then you don't have to be the market leader selling the big blockbuster hits in order to turn a profit. But you can't suck either; Long Tail doesn't change that.
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Or, at least, I used to. A few years ago I got sick and tired of being FORCED to watch advertisements for movies I will NEVER watch, and FBI warnings that mean nothing to me. So, I stopped buying DVDs.
Now I just watch them at the theatre if I think they will be good or just wait for them to appear on U-Verse.
***offtopic***Will someone tell those ass-wipes in Hollyweird that they are losing valuable customers with this practice of putting in useless ads and trying to force people to watch them. I have DVDs that are getting long in the tooth and it's kind of sickening to see ads for movies that have come and gone. Why can't things be like my DVD of The Matrix? When I put The Matrix into my DVD Player, the thing starts at the movie! What a unique concept! DUMBASSES!
Don't even get me started on Blu-Ray. I'm supposed to buy my movie collection again just to get innundated with the same crap?***offtopic***
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I remember years ago when porn customers were happy enough to see a video of good looking people having sex. Now I have the impression that entire companies are surviving off the money of "long tail" customers who want to see shemales fuck midgets inside of a walk-in freezer.
And as we all know, where porn goes everyone else follows.
Yea no. That's better than say Disney and their offensive attempts at disabling parts of your remote during their previews, but it's still a far cry from ideal.
Remember when DVDs first came out? You could watch previews, if you actively looked for them on the disc. They were often sequestered in the special features menu. Which is ideal because trailers for future movies have a shelf life of a month or two. Whereas the movie you purchased is meant to last for years. That was the whole point of buying it in the first place. Once DVDs got a foothold in the market companies began forcing previews down your throat. They don't care that you really like this movie and intend on watching it multiple times over the years. They just want to make sure you see the new product they have coming out.
The new product which, if you're at all of discerning taste, is likely to be garbage. Garbage that parades around in front of you again and again each time you try to play your beloved movie. Anymore I just rip movies to my media server immediately after I get them. Then the next time I want to play the movie, it just starts. It starts up and I'm just there, in the movie. The whole point of the exercise in the first place. Every once in a while I just place the disc in the tray and play it the old fashioned way. And often I'm amazed how much useless bullshit I have to flip through to get to the fucking meat.
You can call it nitpicking. It's a very small amount of your time they're wasting. Any particular instance of it is insignificant. But think about the aggregate amount of time and energy wasted on such things over the course of the lifetimes of all consumers. For something that moves as fast as the modern world does, those little moments are more precious than people tend to realize. Especially when it is something that ultimately benefits neither party (spent, worthlessly old advertising). I paid you. Stop fucking with me and let me enjoy my purchase.
It's not Disney who are disabling your remote. It is your remote control and DVD player that are broken. Disney are simply exploiting flaws in the player to make you watch what they want.
Why can't you buy a DVD player that has more sensible behaviour? Because of the DVD cartel that insists on this anti-user behaviour. If there were a competitive market in DVD players (e.g. if the necessary patents were licensed at the same rate to all manufacturers, regardless of whether they implement region coding or no-skip or other obnoxious features) then this crap would soon disappear.
Blaming Disney is a distraction. Focus on the real source of the problem. It's the same thing as blaming movie studios for not letting you watch a film on a non-HDCP display, when in fact it is the operating system (Windows Vista or Mac OS X) that enforces this restriction on you.
-- Ed Avis ed@membled.com