Long Tail Theory in Television Markets
Today’s market is powered by blockbuster hits. The sales of these popular products return extremely high revenue for a period of time. However, the smaller, less popular products are also selling, just in smaller amounts. These niche markets are effective in a different way; while they don’t sell large numbers all at once, they do sell consistently over a longer amount of time. There is always demand for lesser known material from a wide range of people and places. The Long Tail approach uses the niche genre to sell a lot of different products to many people. The study recorded a European television audience’s viewership of Video on Demand niche material: cultural shows and videos. The results indicated a high demand for free niche products and a smaller demand for the cultural shows that cost money. While some of the videos offered were more popular than others, they were all viewed at least once. This supports the Long Tail theory’s idea that niche products are purchased by the public if they are available. However, the study did indicate that the Long Tail approach may be more applicable in other forms of media, such as music and books. Regardless, catering to numerous smaller audiences with more specific tastes is a promising method of creating revenue.
The recent increase in companies taking advantage of the Long Tail Theory and offering products in niche markets shows how important this business is today. The effect of companies like Amazon.com and Netflix that offer both the mainstream and the niche are having is profound. They are setting an example for what the future of marketing and successful business could be. These companies are also very popular with the people, indicating that they will continue to be successful. These examples show that the Long Tail Theory is effective and useful in today’s markets.
Amok, R. (Creator), & Amok, R. (Poster). (2007). The Long Tail: For Marketeers [Video file]. Retrieved from http://www.youtube.com/watch?v=Abf8ySWVJuA
Evans, T., De Marez, L., Hauttekeete, L., Biltereyst, B., Mannens, E., & Van De Walle, R. (2010, May 10). Attracting the un-served audience: the sustainability of long tail-based business models for cultural television content. New Media & Society, 12(6), doi:10.1177/1461444809354211