Exploiting the Long Tail through Communities of Interest

Developing sustainable business models for the distribution
of  Content-on-Demand and related interactive services
to the home and on the move through Broadband TV and Mobile Devices

Interactive media-rich content for a vast amount of topics is already easily available via the Internet using a computer. However, in some circumstances it might be more appropriate to have access to topics of interest through a mobile device “on the move” or a television in the home. Networked technology solutions are already available through interactive and broadband TV and through 3G and Wi-Fi when on the move. Convergence is also leading to opportunities for access anytime and anywhere through whatever is the most appropriate device to use.

Major mass-media content providers are already actively developing or exploring the possibilities of utilising these solutions for distribution of their content and related interactive services. Other content and information providers in both the public and private sectors are interested in exploiting these new opportunities. But, they may have content that is more appropriate for niche markets or for specific communities. Until now, it has often been uneconomic to distribute such content to small numbers.

However, technology solutions are providing new opportunities to more easily access vast amounts of content and resources that were not easily accessible in the past like archive material in museums and art galleries. Opportunities are also emerging for the customisation and personalisation of content and information services tom individual users.

Critical for the success of the development of such niche or special interest services is being able to create sustainable or business models that show how such services might be funded or what revenue streams are required for sustainability.

Traditionally, media broadcasting has focused on “one-to-many” services However, the technology solutions are also creating new opportunities to exploit the concept of the “Long Tail” – one-to “a few” (see Fig 1), through supplying lots of niche markets and communities of interest instead of mass media markets through broadcasting for example. Early developments include narrowcasting to closed user groups and thematic or special interest broadcast channels. 

Fig 1 The Long Tail
(Source: "Broaden Your Life" Michiel Pelt, Alcatel Research & Innovation NEM Workshop 3 December 2004)

Already, sustainable business models are already starting to emerge based on this idea of the “Long tail” - like the Rhapsody on-line music store (see Fig 2). Rhapsody’s traditional retail outlet is Wall-Mart, but there it can only physically stock the most popular titles. Yet, the on-line store can hold a vast number of other special interest or less popular titles. This amounts to a significant twenty-two percent of total Rhapsody sales.

 Fig 2 The Long Tail – Rhapsody on-line music store
(Source: Wired Magazine October 2004)

The mobile telephone has now become the ultimate “one-to-one” personal device that is increasingly capable of receiving media-rich personalised content that can sent to individuals or to specific niche markets or communities of interest. This will increasingly support services that are offered through the long tail to these special interest markets.

pjb Associates is interested working with organisations who is involved somewhere along the supply and value chains like an information/content provider/distributor or a service distribution provider in either the private or public sector who is interested in developing these new opportunities and might need some assistance in thinking through the issues.

Note: the original idea of the Long Tail comes from an article called "The Long Tail" by By Chris Anderson in Wired Magazine October 2004

See our Long Tail resources area for more information.

If you are involved or are considering getting involved in this area and want to discuss possibilities do contact us.

If any organisation is interested in using our consultancy services contact Peter Bates at pjb@pjb.co.uk.

Last updated 15 June 2005