All concepts

Long-Tail Distribution

In statistics, a model which describes a distribution of occurrences where a large portion of the distribution are far from the "head" or central part of the distribution. Often applied in a business, to apply to business models that can offer many different varieties of uncommon goods (Amazon or Netflix), as opposed to few varieties of common goods (Walmart).

Origin

Popularized by Chris Anderson in a 2004 Wired article and his 2006 book The Long Tail. Anderson argued that digital platforms (Amazon, Netflix, iTunes) make it economically viable to sell niche products that physical stores can’t stock. The aggregate demand for these low-popularity items can rival or exceed the bestsellers — the “tail” is long and collectively thick.