The Long Tail Theory 2006

Chris Anderson

The Long Tail Theory describes how the Internet has influenced
economics, commerce and consumption. Since Broadband was
introduced in 2001, these impacts have been most prominent.

i.e. The Head is ONE shop that has 50 customers.

The Long Tail is 50 websites than each have 1 customer.
 The Film Industry

The Long Tail theory can be applied to the film industry in terms of how
films are distributed.

i.e. The Head is a high street film retailer such as Blockbuster.

The Long Tail is an online film distribution service such as
Amazon.
 The Film Industry

This means that high street shops (the Head) that sell films are gradually becoming
less popular due to the restrictions they experience in terms of shelf-space.

Internet retailers (the Long Tail) do not experience this as they do not have a
physical shop. Their unlimited space shelf allows them to provide for niche
markets, increasing their customers as they have a wider variety of products.
 For example…
Head Long Tail

The Head may contain: Cinema chains such as Cineworld, Odeon; film retailers such as
HMV, Blockbuster,

The Long Tail may contain: Internet sites such as Netflix, YouTube, LOVEFiLM etc.;
iTunes,

Due to the growing accessibility of the Internet, more and more films are being
downloaded online rather than bought in the shops.
 Impacts on the Film
Industry
Advantages Disadvantages
Films are more available Illegal downloads i.e.
online, increasing views and Pulocker, Sockshare,
popularity. 1channel.
High street shops lose sales
as customers resort to online
purchases.