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Marginal Revolution has the best comment I could find on This Paper (Summarized Here on "The Long Tail."

Overall I cannot call this one for Elberse. If you take a genre as given, the web looks less revolutionary but part of the long tail is the creation of new genres. We have blogs now, for instance, and we didn't fifteen years ago, even though blog readership is quite concentrated among the top sites....You could have rewritten that as "The Long Tail hypothesis is basically true, just don't sell to the Long Tail alone." On that we should all be able to agree.