No need
There are a number of limitations that the “brick and mortar” stores have but online stores don’t have. One, through online stores, unlike in the “brick and mortar” stores, the trend of the customers can be noted. Second, through online stores, one can get the feedback which is the reviews of the readers. Third, there are algorithm-fueled recommendations (Chris, 2009). Four, there is unlimited selection (alternatives) and what the customers want and in the manner that they want it delivered. Last, as Pareto cites an example of Netflix, more items are hired threefold online compared to the brick-and-mortar stores.
Anderson doesn’t think that the 80/20 Rule is incorrect. Were he to say that it’s incorrect, that it would imply that it he means it doesn’t apply: but it does. However, the 80/20 Rule isn’t applicable to online stores. 80/20 Rule, was coined by Vilfredo Pareto and it means that the 20% of the reasons of a particular occasion can determine 80% of the results.
Anderson doesn’t mean that the “Long Tail” will eliminate the “mega-hits”. However, what he does says in my opinion, is that the “Long Tail” will squeeze in the “other marginalized hits”: the latter meaning songs which as Pareto puts it,” songs that no traditional jukebox anywhere has ever carried.” Depending on what “elimination” is taken to mean, and in this case meaning edging out of the market, these so called “mega-hits” won’t be eliminated. According to Pareto, it is crystal clear: popularity doesn’t determine the returns it will bring. To cap it all, the author soberly pipes it that people make assumptions that the 80% that doesn’t secure a space in the Wal-Mart and the other major retailers is underprivileged, i.e., “must be sub-commercial.”
Anderson thinks that if the prices are cut, people will buy more and tend to compete with free thus delivering more profits.
Business can use customization to increase their “Long Tail” revenue by competent marketing, and letting fewer films and music to stream to the audience. Also it can be by endorsing searching and rekindling the music fervor through upgrading “signal-to-noise ratio.”
References
Chris, Anderson. The Long Tail. 2009. 23rd September 2011 <http://www.wired.com/wired/archive/12.10/tail_pr.html>.
