Archive for November, 2007
Alex Iskold of Read/WriteWeb makes a great case for why “there’s no money in the long tail of the blogosphere.” Or, indeed, in the long tail of anything. The crux of his argument: “You can make money on the long tail but not in the long tail. ” It’s an important distinction. Too many people blithely cite the Long Tail as the reason their low-volume, low-margin business will be successful.
Iskold demonstrates his point with the example of Google, which of course profits handsomely from AdSense, purely because of the huge volume:
“AdSense works for Google because the odds are in its favor – it is aggregating small amounts of traffic across the entire web. The math works for them because it is based on the massive scale of the web. It similarly works reasonably well for the sites with large amounts of traffic, but it fails for smaller publishers who have low visitor counts.”
So, all you aspiring pro-bloggers out there, don’t give up the day job!
PC Pro reported today on a rare sighting of (an unprompted) corporate mea culpa and a fairly common volte-face. Speaking at the GSMA Mobile Asia Congress in Macau, Edgar Bronfman, chairman and CEO of Warner Music Group, admitted that the music industry screwed up on digital downloads and cautioned the mobile industry not to make the same mistake.
Quotes PC Pro:
“We used to fool ourselves,’ he said. “We used to think our content was perfect just exactly as it was. We expected our business would remain blissfully unaffected even as the world of interactivity, constant connection and file sharing was exploding. And of course we were wrong. How were we wrong? By standing still or moving at a glacial pace, we inadvertently went to war with consumers by denying them what they wanted and could otherwise find and as a result of course, consumers won.”
Of course, one quick admission of guilt is not going to fix things overnight, and as the article points out, Warner is still only toying with DRM-free music. It’s going to be a long time before the music industry snuggles its way back into consumers’ affections.