Before the Internet, the numbers of movies that could be sold were limited by the number of movie screens or shelf slots in video stores. With the Internet, via Netflix or Amazon or many online stores you can buy all sorts of movies that never would have made it.
Before the Internet, book sales were limited by bookstore shelf space and publisher marketing budgets. With the Internet, the few rare book stores are online, and lots of not-yet-rare but hard-to-find books are findable.
The fat head of traditional distribution is equaled in value by the long tail of online distribution.
Before the Internet, music hits were limited to radio channels and music store shelf slots. With the Internet, Apple is making a killing on the iPod and iTunes, and a few upstart music companies are revising how music production, distribution, and promotion works.
So what that RIAA is still suing teenagers in a last-ditch effort to preserve the old music biz. Let them hammer wasps. They who understand the new paradigm will win.
Chris’s book explains the new paradigm, including what it has to do with Reed’s law, group forming, and participation. See his blog, too.
Sticking to the old model while the world changes is not good risk management. Riding the long tail to a sustainable participatory niche market is good risk management.
-jsq