vendredi 28 décembre 2007

dimanche 23 décembre 2007

THE LONG TAIL AMAZON

Small reminder first of all on the concept of length tail:
We speak about Long Tail when the products which are the object of a weak demand, or which have only a weak volume of sale, can collectively represent a market share equal or superior to that of best-sellers, if the distribution channels can propose enough choices ( Wikipedia)

The often quoted example is Amazon. Their site is the only one has to sell so many different books. Some are thus trouvables only to them. The sum of the tiny sales of these numerous products represents a figure so important as the enormous sales of some best-seller.

Furthermore, for the producers and the distributors of cultural contents (music, texts, videos, etc.), the second level of economy is reached in the distribution of the contents which circulates itself by the network because it is digitized
now abundantly (blogs textual, podcast and musics mp3, films and videos dvx, etc.).

This curve thus comes down in a asymptotic way towards the zero without ever the touch. The objective of companies based on this Long tail as Amazon is to monetize (with profits) the zone of demand where this one is so weak that no profitability could be envisaged before the Internet.

" Amazon " where the on-line bookseller has (in his initial model) took advantage of Internet only to reduce the costs of promotion and facilitate the transactions of sale of products which cannot be sold in retail shops because their niche is too narrow.
Anyway, the global economic value of this long dra
gnet remains to estimate: Amazon, is still only very recent additional effects in their respective branches. To where the current alterations(transfers) of shape (elongation and thickening of this long dragnet they can go knowing that the financial resources of the consumers remain identical and that the human being is a fundamentally gregarious sort thus which will keep all the same finally his instinct "herd" for a part of its cultural choices.