The Most Important Thing You Will Read All Day

via the Lefsetz Letter, a really interesting look at how the music industry has become a blockbuster oriented business. So much for the Long Tail.

The numbers certainly do not come close to the trusted ’80/20 rule’ that many managers live by, which supposes that 80 percent of the sales tend to come from 20 percent of the products on offer. For music albums, it is close to an 80/1 rule – if we can speak about a rule at all. Even if we take a conservative estimate of what would be on offer in a bricks-and-mortar store at any given point in time, Anderson’s predictions that long-tail sales will rival those in the head are far off.