I am a big fan of the Long Tail theory developed by Chris Anderson and summarised in the book of the same name. Basically, it states that the Internet and digital distribution eliminate the constraints of shelf space, which allows online services to carry unlimited inventory, leading to theoretically infinite consumer choice and an optimal matching of supply and demand.

Last Fall, Bear Stearns media analysts already had a further look at how the long tail theory would impact the video content business model, mainly on TV, and with a focus on audience and adveritsing fragmentation, resulting in a potential restructuring of competitive forces on the media value chain. They recently updated their analysis - the report can be accessed here, it also includes key takeaways from the first iteration.

Key messages are:
- User Generated Content is not a fad and can actually be monetised
- Paradox of too much choice can be managed by content aggregators, gaining a strong position on the content value chain
- Content is not king, great - and actually randomely created - content is