I enjoy reading the long tail
article for this week. The long tail seems to free all audience from commercial
market, which follow the rule of the lowest-common-denominator.
What
surprising me is that no matter how small the market is, as long as it is put
on the internet market, the profit of small markets make can add up to a huge
market. The author pointe out that almost everything is worth offering because
it will find a buyer. My question here is that is the profit of selling to only
one buyer greater than the cost of offering it? Only when the cost of distribution
and manufacture of the product is approaching zero, can it make a profit from
few buyers. It is understandable that there is no cost of distribution, package
and shelf space for online product but is it really no cost to offer digital
content? Especially for those old movie without digital format.
Another
interesting point in the article is that lowering price to pull consumers down
the tail. The price of a track can be a lot cheaper than it is now. The author
pointed out that compared to free track, a few more cents of track but with a
consistent quality, legality and time efficient can compete with free. I doubt
it. Like the experiment statistics we saw in class last week, consumers tend to choose free stuff
regardless its quality. As long as there is a free music to download, even 20
cents seem to be way more expensive.
In conclusion, I
wondered how low should the price be and how long the tail is can make a profit
that add up to a huge market?
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