The Long Tail concept was coined by Chris Anderson to describe a shift in the media business from selling a small number of “hit” items in large volumes toward selling a very large number of niche items, each in relatively small quantities. Anderson described how many infrequent sales can produce aggregate revenues equivalent to or even exceeding revenues produced by focusing on “hit” products. Anderson believes three economic triggers gave rise to this phenomenon in the media industry: 1. Democratization of tools of production: Falling technology costs gave individuals access to tools that were prohibitively expensive just a few years ago. Millions of passionate amateurs can now record music, produce short fi lms, and design simple software with professional results. 2. Democratization of distribution: The Internet has made digital content distribution a commod- ity, and dramatically lowered inventory, commu- nications, and transaction costs, opening up new markets for niche products. 3. Falling search costs to connect supply with demand: The real challenge of selling niche content is fi nding interested potential buyers. Powerful search and recommendation engines, user ratings, and communities of interest have made this much easier. # of Sales TOP 20% Focus on a small number of products, each selling in high volume bmgen_final.indd 68 6/15/10 5:35 PM