A world of hits
Ever-increasing choice was supposed to mean the end of the blockbuster. It has had the opposite effect
NOVEMBER 20th saw the return of an old phenomenon: the sold-out cinema. “New Moon”, a tale of vampires, werewolves and the women who love them, earned more in a single day at the American box office than any film in history. The record may not stand for long: next month “Avatar”, a three-dimensional action movie thick with special effects, will be released (see picture). This film’s production budget is reportedly $230m, which would make it one of the most expensive movies ever made. “Avatar” will be a great disappointment if its worldwide ticket sales fail to exceed $500m. Yet it is a reflection of how things are changing in the media business that such an outcome is unlikely.
There has never been so much choice in entertainment. Last year 610 films were released in
This is not what was predicted by one of the most influential business books of the past few years. In “The Long Tail”, Chris Anderson, editor-in-chief of Wired, a technology magazine (and before that a journalist at The Economist), argued that demand for media was moving inexorably from the head of the distribution curve to the tail. That is, the few products that sell a lot were losing market share to the great many that sell modestly. By cutting storage and distribution costs, the internet was overturning the tyranny of the shop shelf, which had limited consumers’ choices. And, by developing software that analysed and predicted consumers’ tastes, companies like Amazon were encouraging people to wallow in esoterica. Such companies did not just supply niche markets—they helped create them.
“The Long Tail” set off a lively debate. Professors at
“Both the hits and the tail are doing well,” says Jeff Bewkes, the head of Time Warner, an American media giant. Audiences are at once fragmenting into niches and consolidating around blockbusters. Of course, media consumption has not risen much over the years, so something must be losing out. That something is the almost but not quite popular content that occupies the middle ground between blockbusters and niches. The stuff that people used to watch or listen to largely because there was little else on is increasingly being ignored.
- Content Economics, Part 2: Payments – By Felix Salmon
I found the excerpt below especially interesting. And remember (warning: shameless plug to follow), you can always support this site by clicking on the SUPPORT VALUE INVESTING WORLD link on the homepage, or by clicking HERE. The bigger lesson here is...
- Chris Anderson On Why He's Leaving Digital For Diy
Found via Simoleon Sense. Wired's long-time editor in chief, Chris Anderson, announced on Friday that he was leaving the magazine to become CEO of his DIY-drone company, 3D Robotics. This move comes a month after the release of his latest book, Makers:...
- Business Insider Interview With Chris Anderson
Prior to joining Wired as its Editor-in-Chief, Chris Anderson swore to himself that he would never become a journalist. Why? Because his parents were also journalists.So he went and got a degree in physics and a job at Los Alamos.In the end, his lineage...
- Upfront And Unscripted With Jeff Bezos (audio)
I think Jeff Bezos and Chris Anderson are two of the best people from which to learn. I don't know how I missed this podcast the first time, but it is really great (in my opinion). I also think the iPod-like comparison is a valid one for The Kindle....
- Free! Why $0.00 Is The Future Of Business By Chris Anderson
At the age of 40, King Gillette was a frustrated inventor, a bitter anticapitalist, and a salesman of cork-lined bottle caps. It was 1895, and despite ideas, energy, and wealthy parents, he had little to show for his work. He blamed the evils of market...