The Long Tail in Question
May 25, 2009 at 5:00 am | In Marketing, Music Business | 1 CommentTags: Amazon, audio, Catalog, CDBaby, Chris Anderson, consumers, Content, Demand, digital, Digital Media Digest, distribution, Economics, Harvard, internet, iTunes, label, long tail, Music, Online, Project Studio, Record Labels, Supply, The Long Tail, Tunecore
Chris Anderson’s Long Tail Theory is under scrutiny, and both sides have reason to claim victory. I’d be interested in Chris running his numbers again with data from iTunes and AmazonMP3. If I had to guess, his 98% rule is overstated at best. Keep in mind he was doing his research on data from 2004, which is way too early to develop a trend rule that will stand the test of time. Regardless, after analyzing the data that I do have access to, I fully believe in the value of the “tail”, but I’ve come up with a series of x-factors that I believe were underestimated, ultimately leading to a 98% rule in question, and Long Tail under the microscope.
- Project Studio Proliferation in the 90s:
- Creative and Financial filters were destroyed.
- Music creation became affordable…not just consumption.
- Supply increased exponentially.
- Digital Content Delivery Services:
- The Internet:
- Destroyed traditional distribution filters
- Introduced a retail environment absent of scarcity.
- Distribution products without demand became possible.
- Consumers given access to their niche
- The Majors realize value in Digital Distribution:
- Released a flood of product with little or diminishing demand into the market. For example, out-of-print titles could be resurrected without the traditional costs of manufacturing, stocking, and distribution.
- Streamline processes to make extend their “tail”.
I believe we will hit what I call a “Ground Zero” with audio content by 2010. The Majors will have completed their catalog delivery and any pent up product still looking for distribution will have found it’s way into the digital marketplace. By then, who knows what new technologies will be available or what challenges lie ahead. I appreciate Anderson’s work in trendspotting and hope, for the sake of us all working in the industry, he will continue to keep his theory fluid, updated, and transparent.
Newspapers – Daily Circulation Strangulation
May 4, 2009 at 2:57 am | In Media Business | Leave a CommentTags: circulation, daily, digital, Digital Media Digest, internet, Media, news, newspaper, print
We saw this coming years ago. At least those of us in the music industry. Misery loves company I guess. So it’s no surprise when newspaper daily circulation reports show this depth of decline over the past six months. The question is whether or not the Internet, the Economy, or a mixture of reasons is to blame.
I’m out of the print loop, but I’d love to hear any opinions regarding Wall Street Journal’s ability to show an increased daily circulation over the past 6 months or any examples of newspapers re-inventing themselves for the future.
Bob Lefsetz
January 9, 2009 at 2:37 am | In ...And I Quote, Music Business | Leave a CommentTags: digital, Digital Media Digest, Lefsetz, Quote, record label
“The institution has trumped the musicians”
From his recent blog “Timing“. While I’d like to read more from Bob about what he thinks WILL work instead of what hasn’t, doesn’t, or won’t, I am grateful for the blunt reality that he brings to the table and his assessments are, for the most part, spot on. For those of us working in the music industry, it’s difficult to deny that the artist isn’t the focus anymore. Everyone is in survival mode from the Penthouse to the Mailroom. Digital will never compensate for physical revenue losses and physical has chosen a slow and painful death, which means there’s still a long hard road ahead. Headcounts will continue to be reduced and, unfortunately, the Institutions haven’t been starved enough to spawn effective ways to be a successful record label of the future and until then, the musicians will suffer.
Web 2.0 New Marketing 4Ps
November 6, 2008 at 1:53 am | In Marketing, Music Business | Leave a CommentTags: 4Ps, consumer, Digest, digital, Digital Media Digest, Marketing, Media, New Media, p2p, Participation, Peer-to-Peer, Personalization, Predictive Modeling
Just Passing this Along. Another Wikidiscovery
1. Personalization: Consumer customization of the product or service. Opportunities expand and evolve with technology.
2. Participation: Consumer plays a role in the direction of the brand, product, service and is a by-product of the democratization of information.
3. Peer-to-Peer: “Active Consumer Communities” replacing “Passive Consumer Bases”.
4. Predictive Modeling – Implementing algorithms that limit risk, maximize potential, and eliminate known problems.
4’s Company, 7’s a Crowd (Service Marketing)
November 5, 2008 at 3:41 am | In Marketing, Music Business | Leave a CommentTags: Amazon, Customer Acquisition, Digest, digital, Digital Media Digest, Marketing, Media, MP3, P's, people, Physical Evidence, Process
I ran across these today as I was researching. I’m sure this has been around a while, but it’s new to me, so I thought I’d throw it in. Turns out Service Marketing (over Product Marketing) requires a few extra P’s.
1. People – mostly referring to people who come in contact with customers and how they can positively or negatively influence the situation
2. Process – The actual process of providing a service or “How you go about providing your service”. This immediately makes me think of the old Krispy Kreme stores where you are in an out very quick, but if you do get stuck waiting, your stuck salivating over the hot donuts rolling through the assembly. Which Wich also comes to mind with there very unique way of taking orders and processing them
3. Physical Evidence – Turning the Intangible service into something tangible or concrete. Providing evidence of the service is important. Wiki notes case studies, testimonials, and demonstrations.
Let’s apply this very quickly to the last blog entry about Digital Service Providers. It’s more than just Product and it’s certainly more than Price. These companies like Amazon are providing a service and execution of these 3 P’s will most likely determine their level of ultimate success.
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