I just read this in The Long Tail – (in one of the many sections where he overstates the significance of his theory, great book though and post on what it means for the small business world to come).
What happens when the marginal cost of production and distribution tend to zero?
Holy smoke!
This goes deep I thought at first.
Then I realised people will simply spend their money on something else! Like a Flickr subscription.
EquityKicker,
There’s a lot of Long Tail hoopla — Anderson makes this point, but doesn’t support it with hard data — and for good reasons. I can say that he doesn’t understand Operations at all. Please read my post on the Long Tail and I explain it there…
http://www.shmula.com/162/the-long-tail-ad-nauseum
Peter Abilla