Notes on 'The Long Tail'

Saturday, August 19, 2006

80:20 Paretto Principle was the past, '98% rule' is for today

Robbie Vann-Adibe, CEO of Ecast, a digital jukebox company, asked the author, what percent of the 10,000 digital albums he had, sold at least 1 track per quarter. Most would answer 20% citing the 80:20 rule. But it turned out to be 98%, concluding that there is demand for even the most esoteric music, and only 2% turned out to be useless or have not been discovered by consumers.

I believe if he modified the query from 1 track to some number, say 4, we would eventually make it to the 20% threshhold. The real piont of discussion is not whether 80:20 is still relevant, but the fact that (pg 8) "in a world of almost zero packaging cost and instant access to almost all content in this format, consumers exhibit consistent behavior: They look at almost everything." I would rephrase that as:
consumers will exercise their right to more choices... and more importantly, you reach more consumers, thereby increasing the diversity of your consumers... thereby increasing the likelihood of finding demand for your goods.

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