- LONG TAIL
- Online
business model
- Selling large
amounts of more obscure items to many people (e.g. Amazon, Netflix, HD
Jukebox)
- Small number
of items, big impact (few large cities vs. several small ones)
- Characteristics
- High number
of goods
- Low cost of
reaching markets
- Ease of
finding niche products
- Flattening of
the demand curve for mainstream hits
Cross subsidies is something that I get sucked into all too often, for example a free cell phone is offered online, but it comes with a contract that you have to pay a monthly bill on.
- What’s free:
any product that entices you to pay for something else.
- Free to whom:
everyone willing to pay eventually, one way or another
- E.g. games,
phone contracts, Amazon Prime, infomercials w/ shipping and handling
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