Friday, 11 March 2011

The Long Tail

Chris Anderson says that businesses originally thought that the release of a product for example a movie or a song was when it sold the most copies and is at its most popular. This was before the internet when there was limited storage in shops such as Wall - Mart so consumers could only access what was deemed as profitable or new and popular. But now because of the infinite storage capacity of the internet every single movie and song no matter how niche it is can be accessed because there is very little risk of keeping it available on the internet compared with actual shops. This has changed how companies will produce their product as the release of the product is no longer the most profitable period, it is now the steady constant small demand afterward which is the most profitable as it is accessible 24/7, in many different forms.

Niche film - Clerks, Kevin Smith, 1994
Production costs - 27, 000
Cinema screens - It played on less than 100 screens 
How much it has made - $3 million just in the USA

Blockbuster film - Die Hard, John McTiernan, 1988
Production costs - 28 million
Cinema screens - Over 1200 screens
 How much it has made - Over $140.7 million worldwide

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