Very interesting video interview with Google CEO Eric Schmidt on the long tail and other subjects at McKinsey Quarterly. Key quote from Schmidt on the long tail:
"I would like to tell you that the Internet has made such a level playing field that the end of the long tail is the place to be ... Unfortunately, it's not."
Schmidt points out that in most new network markets 90% of the revenue is the head of the power curve. This is because the Internet has created a broad, global distribution medium resulting in larger block busters and more concentration of brands.
Our work on industry structure and small business fits with Schmidt's comments. Across most industries we are seeing industry consolidation and big brands getting bigger. But at the same time, we are seeing the number of small firms increase. McKinsey calls this "barbell economics" and we borrowed their term and discuss in more depth in our New Artisan Economy research report.
We also cover this topic in our post on beer industry structure and niche markets and a post on the Long Tail and small business.
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