Do Long Tail Products Create Demand for Social Networks?
-
Font Size:
Bokardo.com has an interesting article today titled, "Did the Long Tail Beget Social Design?", arguing that digitally delivered products without the constraints of shelf space create a paradox of choice for consumers
When content is digital, a public good, it is freely distributable by electronic means. It is infinitely copyable at 100% fidelity. Moreover, as the Long Tail shows, libraries of content can be built cheaply which provide value for the long term. Once Google (GOOG) digitizes all the books in the world they won’t ever have to again.
In other words, all content is available at all times.
What does this lead to? The Paradox of Choice! There are simply too many things to choose from. Which of the thousands of movies on Netflix (NFLX) do I rent? Which of the books on Amazon (AMZN) do I read? Which of the songs on iTunes do I listen to?
Ironically, the article posits that the answer to the plethora of digital products is people.
Social design is thus forced upon the marketplace. The Long Tail begets social design. The only way for people to find out what’s best for them is to route around the system in the way they’ve always done.
Ask other people. Have conversations. Give and get recommendations. Tell someone what your preferences are, and they’ll give you their best guess.
And that’s what Netflix and Amazon and iTunes have done. They were forced to, in a sense, for they had no other way to give recommendations to their customers. The old constraint of shelf space is gone.
I've argued similarly here in the past, so it's always nice to hear someone else come to a similar conclusion. I pose one final question though: what will we do when we are overwhelmed with social networks ranging from Facebook, MySpace, LinkedIn, NetFlix, Amazon, and countless others? Who will guide our choices then, when we must choose among the wisdom of multiple crowds and communities?
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
Loading...
Symbols:
-
Editor's Picks
-
Most Popular
- The Nature of a Crowded Trade: This Time It's Housing
- American Express Calls Investment Banks' Bluff
- Japan: Recession-Bound As Exports Slow?
- iShares MSCI Mexico: Surprising Strength South of the Border
- A Fed Rate Hike Won't Solve the Current Crisis
- Understanding Metastorm's IPO as an Investment Opportunity
- Full list of Editor's Picks »
- Three Stocks To Be Held To Infinity and Beyond »
- As WaMu, Wachovia Ready Earnings, Comparisons to Wells, USB Are Telling »
- Wall Street Breakfast: Must-Know News »
- Steve Jobs' Health: A Red Herring »
- Financials: How - And When - We Reached the Bottom »
- Four Long-Term Winners Selling at Deep Discounts »
- Apple F3Q08 (Qtr End 6/28/08) Earnings Call Transcript »
- Earnings Preview: Washington Mutual »
- The Agriculture Boom Goes Bust »
- Crazy Dividends »
- Apple's a Buy Under $150 »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Auto Retailers' Ability to Pay Debt - What It Means
- Three Conservative Growth Industrial Picks: Adminstaff, Carlisle Companies and Illinois Tool Works
- Wait for August FFIEC Call Reports Before Taking a Long Position in Banks
- Now's the Time to Buy Something
- 3Com Corp.: Undervalued by Half
- Wachovia CEO's Insider Buying Is Another Indication of a Bottom
- Consumer Staple Stocks Are Not Always Safe Haven Investments
- The Long Case for Abbott Laboratories
- AT&T Stays Ahead of the Curve in a Dynamic Industry
- Dollar Back? - Fast Money Recap (7/23/08)
- Full list of Long Ideas »
- Collateral Damage From the War on Shorts
- Is the Gold Uptrend Over?
- Response to Raymond James' Q3 Conference Call
- eBay is a Not Com - Cramer's Lightning Round (7/23/08)
- Get True Religion - Cramer's Lightning Round (7/22/08)
- Principal Financial Group Vulnerable to Commercial Real Estate Softening?
- Increases in Shorting, Only for Some
- Is a Ban on Short Financial ETFs on the Horizon?
- Is There a More Efficient Shorting Tactic?
- Short Oil as a Long Investment
- Full list of Short Ideas »
- eBay is a Not Com - Cramer's Lightning Round (7/23/08)
- Buy Costco, Get Sirius - Cramer's Stop Trading! (7/23/08)
- Soup Target; Cramer's Mad Money (7/22/08)
- Get True Religion - Cramer's Lightning Round (7/22/08)
- Copper Down Low - Cramer's Stop Trading! (7/22/08)
- Banks Hit Bottom – Cramer’s Mad Money (7/21/08)
- Ends In X - Cramer's Stop Trading! (7/21/08)
- Great American Companies – Cramer’s Lightning Round (7/21/08)
- Market Rotation Bolsters Financials - Fast Money Recap (7/18/08)
- For Everything, Wind - Stop Trading! (7/17/08)
- Full list of Cramers Picks »
Most Popular Feeds
-
ETFs
-
US Market
-
Long Ideas
-
Alt. Energy
- Full list of feeds »
Hedge Fund Jobs
Job Seekers:
- Search jobs by category
- Get job alerts by email or live feed
- Apply online
Employers
- See all recruitment options
- Get applications online or by email



