Differences Between Traditional and Digital Retailers
Purely digital online media retailers, such as iTunes, are not faced with the problem of limited physical space, as traditional physical retailers are, and thus are able to house and sell a virtually unlimited number of recordings because of the relatively low cost of database entry and storage. While traditional physical media retailers concentrate on selling the top 10 to 20 percent of sellers in order to maximize the profit-per-inch of shelf space, digital online media retailers are able to make money from selling all titles, whether they are within that top 20 percent or not. This phenomenon is commonly referred to as the Long Tail.
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