David Hornik speaks the truth about the long tail.
… It is certainly the case that in the aggregate, Long Tail content is extraordinarily valuable. The question for VCs and entrepreneurs is “for whom?” … The value will all inure to the benefit of the aggregators and filterers ….
All. Not some. All.
There are three players in these transactions. The buyer and seller are obvious, with the distribution channel the third. The aggregators and filterers is just another name for middleman, distribution channel, market, or hub.
The three players all benefit when the transaction happens. Some money to the channel, some to the maker, some “consumer surplus” left for the buyer. Pretty much, only one of these three has pricing power.
The emerging hubs; they are the new Telecom, Media, and Platform companies. In the long run it, certainly looks to me like, they will be bigger and fewer.