The Long Tail explains why the big commercial hit is dead, how businesses will generate most of their future revenue from a long tail of niche products, and what we can do to embrace this idea today.

Are you familiar with the 80/20 principle?

The principle suggests that, in almost all areas, 20% of the input gets you 80% of the results.

For example, 20% of the material will get you 80% of the points in an exam, just like 20% of your study time will be where you learn 80% of what you set out to memorize.

It's also a very prevalent notion in business, one that Chris Anderson, editor of WIRED magazine from 2004-2012, thoroughly embraced – until he found out that he was wrong.

Doing a pop quiz at an early music streaming service, Anderson guessed that of their top 10,000 tracks, only 20% would be played in any given month – but it turned out to be 99%.

This sudden revelation turned into an article in WIRED magazine, which then turned into The Long Tail.