This was sent out recently to staff members participating in a discussion forum. Interesting.

Serving the Niche
Viewing libraries through Chris Anderson's "Long Tail" lens

Library Journal, 7/15/2006

The increasingly famous "Long Tail" is essentially a modernized version of the 80/20 rule, something with which most of us have at least a passing familiarity. The rule (credited to Vilfredo Pareto, a 19th-century philosopher) hypothesized, for example, that 80 percent of the property in Italy was owned by 20 percent of its citizens. That rule is now turned on its head, Chris Anderson observed in his groundbreaking article "The Long Tail" in Wired magazine (10/05). For instance, he notes that only 20 percent of the films made this year will be released onto the mass market, and only 20 percent of those will become hits. When you and I go grocery shopping in the brick-and-mortar stores in our towns, only 20 percent of the products actually on the market will be on the shelves for us to purchase. The rest will be seen, read, and/or purchased through alternate online or niche avenues.

Since he published his article, Anderson has presented on the Long Tail at an OCLC symposium at the American Library Association's 2005 annual conference; he's been interviewed by Marylaine Block for Ex Libris; and, most recently, he has participated at a public forum held at the New York Public Library. It's clear that the Long Tail has captured the attention of the library world.

Noticing the niches

Anderson uses the Long Tail to describe the economic models of online businesses such as Amazon.com, NetFlix, and Rhapsody, which thrive on selling fewer of a larger variety of objects to more people than brick-and-mortar stores can. Librarians have taken note of Anderson's work because libraries were, in fact, among the first entities to ever serve niche markets.

When we visit virtual stores like Amazon.com, NetFlix, or Rhapsody, much more than 20 percent of the market is represented. Because online outlets do not have to grapple with the same issues that brick-and-mortar stores do (like limited shelf space, expensive overhead, and shipping for those offering downloadable products), they can afford to offer more selection than the current best-selling brands.

The rest is here.