A great example to look at is JB Hi-Fi and particularly their music department. This is the department that most notably has the widest range of products on offer, basically due to the reason that stock can be imported from overseas and bought from suppliers who focus on getting overseas CD's. DVD's on the other hand cannot be imported from overseas and can only be bought from Australian suppliers, thus there is a much smaller amount of product available. An individual can get a DVD from overseas personally, but it is illegal for a company to do it under what is known as parallel importing. Anyway, so one of the great benefits of the CD department of JB Hi-Fi is that they have access to a large range of products both from overseas and local suppliers. In the past if there was that rare CD you wanted and couldn't get....you went to JB Hi-Fi ( or a number of smaller retailers of CD's such as Utopia or Red eye records). However, with the introduction of iTunes, MP3's and other forms of digital content JB Hi-Fi no longer has the longest tail, at least not in terms of their physical store. They have tried to counter attack this though through their online presence, which much like amazon.com provides information on other products consumers bought or related items which may also be of interest to a buyer. Is this enough however to survive, at least in terms of the music department?
Given that the music industry is struggling to deal with issues of piracy and digital content in particular I would have to say the days of the CD store are somewhat numbered. It seems much easier these days to download music, whether legally or illegally, and with the amount of choice on offer it is almost a no-brainer. Kevin Kelly (2008) labelled eight generative values, of which I feel three apply directly to digital downloads, those of immediacy, accessibility and findability. Although some of the other values may not be present when downloading content, such as personalisation, it is still enough to make us value the product because of the speed and availability on offer. Would you rather pay money for a CD that might take a few weeks to come in (if not longer), or pay for the digital content which is downloaded almost instantly and was much easier to find? As much as I'd hate to say it, the latter is definitely the preferred option. As Clay Shirky (2002) said 'Diversity plus freedom of choice creates inequality, and the greater the diversity, the more extreme the equality.' In other words, the rich get richer and the poor get poorer.
Anderson, C 2004. The Long Tail. Wired, 12.10 URL: http://www.wired.com/wired/archive/12.10/tail.html
Kelly, K 2008. Better Than Free. URL: http://www.edge.org/3rd_culture/kelly08/kelly08_index.html
Shirky, C 2002. Weblogs and the Mass Amateurization of Publishing.
URL: http://shirky.com/writings/weblogs_publishing.html
On your last note about inequality, you really do notice these days in every industry and area of business the little guys are getting knocked out of the game and it's only big corporations like JB HiFi and Amazon that really have a chance.. I read somewhere that 60 000 new books come out in the US every year, as well as 18 000 new magazine titles, I guess its only big businesses that have the resources to aggregate all that new content
ReplyDeleteYou know what? I have no issue buying DVDs and I don't think I've ever downloaded a movie in my life. When I think about buying music though, I die a little inside at the thought of how much money I would have to pay. I wonder why there's such a difference there.
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