Why is mainstream media still confused by the 80/20 rule?

A recent study by Purewire revealed that only around 20% of Twitter users are contributing to the service, with 80% having fewer than 10 followers, and 37.1% having no tweets – leading Techcrunch to suppose most people on Twitter are sheep.

Meanwhile the New York Times reports the shocking discovery that bloggers who assume it’s an easy way to get a book deal or give up their day job often get disillusioned and give up. The article quotes the 2008 Technorati State of the Blogosphere, with 7.4 million (5%)  of the 133 million blogs tracked by Technorati having been updated once in the last 120 days.

The most active 2% of Wikipedia users made 73.4% of edits in 2006 (including maintenance and administrative edits).

The iPhone OS had 8% of the smartphone market, but generated 43% of mobile web requests and 65% of html usage.

Are we noticing a pattern here?

I suspect around 20% of the people reading this post will be knowingly thinking of Vilfredo Pareto, who noticed that 20% of the people of Italy owneed 80% of the land back in 1909, which was then generalised by Joseph M Juran in 1941 into the Pareto Principle, as the common rule of thumb that 80% of the effects come from 20% of the causes, i.e. a Power Law with a The Long Tail.

Internet access gives everyone the ability to self-publish – it doesn’t mean everyone will. Or entitle everyone to be able to make a good living out of it.

And more importantly…

Even if just 1% of bloggers, people uploading video to Youtube, or podcasters achieve sustainable fame and income – how does that compare to the number of aspiring writers, film directors or radio DJs who never even got published or broadcasted under the old model?

The Long Tail never said everyone would get rich – you can either try to rise up to the hit end by being one of the small percentage working harder, being smarter, and getting luckier – or you can aggregate the long tail by working harder, being smarter, and getting luckier, just as Google did with Adsense.

As usability godfather Jakob Nielsen broke it down in 2006: “In most online communities, 90% of users are lurkers who never contribute, 9% of users contribute a little, and 1% of users account for almost all the action.”

The internet doesn’t radically change that dynamic (although it’s definitely possible to move the figures slightly within a specific online community). What it does is hugely increases the numbers included in that 1%, and in that 9%, which has a bloody big impact on the 90%.

That’s the big lesson – a small number of people can get Wikipedia over 55 million U.S. visitors in a year, or create the fact that 20 hours of video are uploaded every minute (equivalent to Hollywood releasing 86,000 films every weekend!). It’s what got facebook to over 200 million users, and Twitter to over 32 million.

It doesn’t mean it’s all popular, or high quality.

It just means that most of mainstream media is likely to end up covered in content as if it went out in a desert sandstorm – and successful businesses need to figure out how to engage and build on that 1% or 20% which creates the value for everyone else.

New stuff in Beta from Absolute Radio

I’m two weeks into my new role as Digital Marketing Manager at Absolute Radio – I’m really enjoying it, I’m getting used to the commute, and hopefully I’ll be back up to speed with my blogging shortly (besides the normal disruption of starting somewhere new, there’s also a truckload of cool things already happening that I’m getting up to speed with).

Sadly I’ve had nothing to do with the cool new functionality that’s been developed for the site, as I only arrived just before it did. But I can definitely recommend taking a look at the newmedia player, videos and other sections of the site, and there’s a handy guided tour to each bit. Any comments and feedback are much appreciated.

So go and take a look at the Absolute Radio Beta Section.

Of utmost importance for businesses to remember

There’s a great article by Umair Haque on ‘Why the war against file-sharing is unwinnable‘, which was collected in a post on Music Industry Manifesto.

And one quote particularly stood out for me as being an essential element of business:

‘No business has a right to profit, sell, or even to produce. All are privileges that society grants businesses.’

That’s why I feel discussions about newspapers, music, advertising etc sometimes miss the point. It doesn’t matter how strongly a publisher might feel newspapers are entitled to survive, or whether a prominent musician feels file sharing and digital music is hurting his future income.

It’s down to whether society, in a viable number, feel a business model has the right to profit.

In closing, Umair notes:

’21st century economics are radically decentralized. Wars against networks are unwinnable — when orthodox organizations are the ones fighting them. Only networks (or markets and communities, if you’re a long-time reader) can fight other networks.

Want a better music/media/etc. “business model”? The understanding that hierarchies are dominated by networks is the key — and the failure to understand it is exactly why the media industry is so deeply in decay.’

The enduring power of a good mash-up…

I dashed out in my car at lunchtime to run some errands, and while I was rushing around, this famous song was being played on the radio (it’s not the official video due to all the Youtube, PRS, music industry and other licensing restrictions.

But the lyrics forming in my head, and the video being pictured in my mind as I drove along was actually:

There’s probably a lot you could imply about original creations, payment mechanisms, and music industry copyrights etc…

I’ll just sit here chuckling and thinking about the quote on a T-shirt I bought from the National Gallery (is it just me that thinks their website is shocking?) recently – ‘Bad artists copy, Good artists steal’ – Picaso.