Home Page
10.30.2006 (previous | next)
Long Tail vs. Making Money

Recognizing the wisdom of Chris Anderson's Long Tail insight even if it seems to have been overinflated, I want it to be true and I like the notion that resellers of content in the digital age can make more money off of content in the Long Tail. But if I'm an online seller of, say, books and I'm selling not the top 100 bestsellers but books 101-100,000, I may do okay, but how much better does the author of book 100,000 do? Probably not that much better.

That is the key insight that has been left out of the Long Tail debate but is presented eloquently by Mark Cuban (that was hard for me to write, as a Suns fan I find his basketball team to be a bunch of whiners and thugs).

"No content creator wants to be on the Long Tail," Cuban writes, and I agree. A number of his commenters disagree, but either (a) they don't really want to make money, so they're irrelevant in a discussion that deals with profit, or (b) they operate in a niche, in which case they may be at the top of their niche curve. Cuban says that naturally any content holder wants to move up the "vert ramp" to a higher point on the curve (more sales) and to do that will likely need Other People's Money (OPM). Cuban runs a cable network and has funded major motion pictures, so he knows a little bit about the kind of money needed to move content up the Long Tail.

This analysis will severely disturb some people out there.

The Long Tail is many things to many people (for Chris Anderson it's a money-maker with sales high up the curve, near the top if the curve is the business how-to market). To commons advocates, the Long Tail fits with the mindset that the arrival of digital technology and the ease of access to information that comes with it is somehow the cause of a cultural shift, toward ownership and production.

Creators will want to create content, and the Long Tail will provide just enough to continue to encourage that, while letting us enrich ourselves with that content at virtually no cost. It's like magic! And of course, as Benkler tells us, we'll all want to produce content to make the world a better place, and this approach to production will supplant existing methods and motivations. With all these bits flying about, making the world a better place, it will be anachronistic to claim ownership to any bits, but who needs to, when society is providing everything we need? It's all very Utopian, and those movements ran aground in the past, but Robert Owen didn't have the Internet.

Bottom line, even in the youngest generation there are those who want to be paid for their creations. And Cuban may be old-fashioned, but he's right that people would rather be paid more than less, and he's right that sometimes you need money to make money and you may need that money from someone else. These are pretty basic economic principles; no one has yet convinced me that they no longer apply in a digital age.

posted by Patrick Ross @ 1:57 PM | Free Culture Movement

Link to this Entry | Printer-Friendly | Email a Comment | Post a Comment(2)


Comments

It s interesting how those who expouse the virtues of the voluntary sector, and eschew government action, are suddenly so threatened when voluntary social organization is so visibly successful.

I wouldn't falter yourself that your analysis will disturb some people out their as it is clear that certain market developments, such as FOSS, wikipedia, and the long-tail will continue to roll over the competition, and in many sector for-profit organizations will be out-competeted by voluntary social networks.

The effects of this on the resulting economy would be a very interesting subject to investigate, and I would be very interested in any investigations done along that line.

However this post just seems to be a long rant on why things should be different, without an factual basis.

Posted by: enigma_foundry at October 30, 2006 8:50 PM

***However this post just seems to be a long rant on why things should be different, without an factual basis.***

What on earth. Its most FOSS proponents who hold views unamenable to market indications by holding Newtonian principles as their goal; who concurrently argue that the proprietary dominated market produces sub-optimal innovation, and at the same time contend that the widespread success of successful IP firms deprives them of freedom when their own firms fail to achieve mass market success. These arguments even refute one another.

Posted by: Noel Le at October 30, 2006 9:15 PM








 
IPcentral WebLog

Blog Main

IPcentral Blogosphere Archives

Search the Blog

Recent Posts
  - IP and Marginal Cost
- Academics and Copyright
- More on Jammie Thomas from DOJ
- More Studies of Downloading
- Facebook, MySpace, and Network Externalities
- Copyright and the University: An Academic Symposium
- Tyler Cowan on Chinese Movie Piracy
- More WHO Antics--Roger Bate Reports
- Patents, Meds, and the Developing World: Clips & Links
- Jermaine Dupri's Gripe with iTunes
Archives by Month
  - December 2007
- November 2007
- October 2007
- September 2007
  - (see all)
Archives by Subject
  - Academia
- Access: Commons, Fair Use, Orphan Works, Public Domain
- Accounting
- Analog Holes
- Antitrust
- Art
- Aspen
- Big Tent
- Biotech
- Books
- Comments from Readers
- Counterfeit
- Digital Americas
- Digital Europe
- Digital Europe 2006
- DMCA
- DRM & Watermarks, etc.
- Economics, Game Theory & Public Choice
- Enforcement & Remedies
- Free Culture Movement
- Games
- General
- Infrastructure
- International
- Internet: P2P, Search Engines...
- Legislation and Legislators
- Liberty and IP
- Markets: Business, Investment & Innovation
- Media: Video, Music...
- Patents
- Pharma
- Physical Property
- Prices, Terms, and Licensing
- Privacy and Security
- Radio
- Software
- Spectrum & Wireless
- Standards
- Supreme Court
- Tax-Funded IP
- Telecom
- Theft of Service
- Universities
Links
 

Site Feed

  - Atom
- RSS 1.0
- RSS 2.0
We welcome comments by email - look for a link to the author's email address in the byline of each post. Please let us know if we may publish your remarks.


 
Home Page