THe long Tail paTTerns 69 Anderson’s research focuses primarily on the media industry. For example, he showed how online video rental company Netfl ix moved toward licensing a large number of niche movies. While each niche movie is rented relatively infrequently, aggregate revenue from Netfl ix’s vast niche fi lm catalog rivals that from the rental of blockbuster movies. But Anderson demonstrates that the Long Tail concept applies outside the media industry as well. The success of online auction site eBay is based on a huge army of auctioneers selling and buying small quantities of “non-hit” items. LONG TAIL Focus on a large number of products, each selling in low volumes # of Products bmgen_final.indd 69 6/15/10 5:35 PM
Business Model Generation Flipbook Page 74 Page 76