Should you invest in the long tail?
TL;DR
Hits remain disproportionately important in digital
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Empirical challenge to the long tail thesis arguing that hits remain disproportionately important even in digital markets. Provides counterbalance to Anderson's optimism about tail profitability.
Important for balanced understanding - while digital enables serving tail, head concentration may actually intensify rather than diminish in digital environments.
Key Findings from Elberse (2008)
- Hits remain disproportionately important in digital
- Head concentration may be increasing not decreasing
- Long tail exists but may not be as profitable as claimed
- Marketing still concentrated on hits