How the Internet (combined with our basic human nature) turned our economy more and more into "the-winner-takes-it-all" economy instead of a long tail one – in music, film, t-shirts and mobile apps.
What are the reasons and mechanism and how can we avoid becoming long tail losers and become short head winners.
Now let's do some name dropping of what we will actually see in this presentation: Avatar, Italy, Steven Spielberg, Seinfeld, Steve Jobs, James Cameron, Friends, Netflix, Madonna, Busted Tees, Angry birds, Mark Zuckerberg, sneakers, Psy, 50 shades of Grey
2. I don’t think it’s realistic to try and topple ‘Titanic’ off its perch
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4. RankTitleStudioWorldwideYear^ 1AvatarFox$2,782.32009^ 2TitanicPar.$2,186.81997^ 3Marvel's The AvengersBV$1,518.620124Harry Potter and the Deathly Hallows Part 2WB$1,341.520115Iron Man 3BV$1,215.420136Transformers: Dark of the MoonP/DW$1,123.820117The Lord of the Rings: The Return of the KingNL$1,119.92003^ 8SkyfallSony$1,108.620129The Dark Knight RisesWB$1,084.4201210FrozenBV$1,072.4201311Pirates of the Caribbean: Dead Man's ChestBV$1,066.2200612Toy Story 3BV$1,063.2201013Pirates of the Caribbean: On Stranger TidesBV$1,045.7201114Jurassic ParkUni.$1,029.21993^ 15Star Wars: Episode I - The Phantom MenaceFox$1,027.01999^ 16Alice in Wonderland (2010)BV$1,025.5201017The Hobbit: An Unexpected JourneyWB$1,017.0201218The Dark KnightWB$1,004.62008^
5. RankTitleStudioWorldwideYear^ 1AvatarFox$2,782.32009^ 2TitanicPar.$2,186.81997^ 3Marvel's The AvengersBV$1,518.620124Harry Potter and the Deathly Hallows Part 2WB$1,341.520115Iron Man 3BV$1,215.420136Transformers: Dark of the MoonP/DW$1,123.820117The Lord of the Rings: The Return of the KingNL$1,119.92003^ 8SkyfallSony$1,108.620129The Dark Knight RisesWB$1,084.4201210FrozenBV$1,072.4201311Pirates of the Caribbean: Dead Man's ChestBV$1,066.2200612Toy Story 3BV$1,063.2201013Pirates of the Caribbean: On Stranger TidesBV$1,045.7201114Jurassic ParkUni.$1,029.21993^ 15Star Wars: Episode I - The Phantom MenaceFox$1,027.01999^ 16Alice in Wonderland (2010)BV$1,025.5201017The Hobbit: An Unexpected JourneyWB$1,017.0201218The Dark KnightWB$1,004.62008^
7. The #1 rule of the Short Head :
Hits are now Mega-hits
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10. “our culture and economy is increasingly shifting away from a focus on a relatively small number of “hits” (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail“
11. When consumers are offered infinite choice, the true shape of demand is revealed. And it turns out to be less hit-centric than we thought. People gravitate towards niches because they satisfy narrow interests better, and in one aspect of our life or another we all have some narrow interest
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13. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size-fits- all containers
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15. “our culture and economy is increasingly shifting towards a focus on a relatively small number of “hits” (mainstream products and markets) at the head of the demand curve and away from a huge number of niches in the tail“
16. When consumers are offered infinite choice, the true shape of demand is revealed. And it turns out to be more hit- centric than we thought. People don’t gravitate towards niches because they satisfy narrow interests better, and in one aspect of our life or another we all have some narrow interest. No we don’t!
17. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size-fits- all containers. There still is!
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19. The #2 rule of the Short Head :
The long tail is dead
20. The #2 rule of the Short Head:
The long tail is dead
41. You’re at the point right now where a studio would rather invest $250 million in one film for a real shot at the brass ring, than make a whole bunch of really interesting, deeply personal — and even maybe historical — projects that may get lost in the shuffle because there’s only 24 hours”.
45. Industry has a lot to do with things… The industry is tough, especially for a band like us, a rock band right now. We’re not bitter about it or anything like, “Fuck the music industry”, that’s the last thing we’re thinking. We’re all continuing to do music
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48. “The music industry is a microcosm of what is happening in the U.S. economy at large. We are increasingly becoming a “winner-take-all economy,” a phenomenon that the music industry has long experienced.... The lucky and the talented – and it is often hard to tell the difference – have been doing better and better, while the vast majority has struggled to keep up. These same forces are affecting the music industry. Indeed, the music industry is an extreme example of a “super star economy,” in which a small number of artists take home the lion’s share of income.”
49. The #4 rule of the Short Head:
If there is a long tail we might find it… but that is about it
59. “For t-shirts I think we’re probably still close to that 20% of the shirt produces 80% of the revenue... Our business is certainly driven by hits… That being said, we still have a nice benefit from having a big catalog to take advantage of the long tail as well…
71. 40% of Apps earned less than 100$ per month from ads, another 30% earned more than 100$ but less than 500$ per month. 2% earned more than 20,000$
, Sep 2012
72. Less than 0.01 Percent of Consumer Mobile Apps Will Be Considered a Financial Success by Their Developers
, Sep 2012
96. positive social influence increased the likelihood of positive ratings by 32% and created accumulating positive herding that increased final ratings by 25% on average