The Long Tail Theory is the idea that more of the economy is heading toward niche markets instead of mainstream. This theory has a high number of goods, low cost of reaching the market, tailoring of personal tastes, and flattens out the demand curve for mainstream hits. A good example of the Long Tail Theory is Netflix. Netflix has a wide variety of movies and shows for viewers to watch. People can go on the website and watch their choice of show instantly. They get you hooked by offering a free trial and then charging you when you forget to unsubscribe. During the free trial people start watching their favorite show and do not want to stop so they end up subscribing. The cost is only $7.99 a month so most people can afford the service since it is so reasonable. Another way Netflix goes along with this theory is by personalizing the movies and shows to the user. After watching a show on Netflix, the next time you sign on it will recommend different shows to watch based on what you previously watched. Netflix is a great example of the Long Tail Theory.
I would describe my online consuming behavior to be a surfer. I like to look at Pinterest, online clothing stores, or social media but I rarely purchase anything online. If I have a specific need for an online product then I will purchase it, otherwise I enjoy browsing. I just like to see what is out there.
I think that Netflix is a great example of the long tail theory that we all can relate to. I've wasted far too many hours of my life becoming addicted to shows that I would have never even know about if it weren't for Netflix. They offer a wide range of cult-classic to oldies but goodies to some newer releases. They really have something available for a variety of people.
ReplyDeleteI too, self-identify with surfer. I love scrolling through instagram and pinterest and other online retailers. I do this for clothing or diy project inspiration and never end up buying anything. Sometimes I wish I wasn't a surfer due to the fact that I could surf for hours just trying to figure out what to watch on Netflix.
I really like the way you defined the long tail theory. You made it more understandable for everyone who is reading this. Netflix is a really good example of this too. Netflix is a great business and it is very good at catching your attention. Agreeing with Eden, they really do have something for every person to enjoy for every different personal preference.
ReplyDeleteI do not self identify with surfer, but I do scroll through pinterest a lot and pin things that i wish i could have haha. Maybe one day ill actually buy some of the things I pin on there!
Netflix is a great example that I never even thought of. It has various genres and lots of movies that are tailored to niche markets and fans. I too am a surfer when it comes to the internet. I don't make many purchases online, but do enjoy discovering new content that relate to things i'm interested in.
ReplyDelete