The economy is undergoing a significant transformation, and as a result, the middle class is slowly disappearing. Instead, a new class is emerging, known as the "Long-Tail Class." In this new world, most individuals earn far less than the average, and chance events play a crucial role in determining who the winners are. This shift has profound implications for society, and it is essential that we understand and respond to it accordingly.

The economy is undergoing a significant transformation, and as a result, the middle class is slowly disappearing. Instead, a new class is emerging, known as the "Long-Tail Class." In this new world, most individuals earn far less than the average, and chance events play a crucial role in determining who the winners are. This shift has profound implications for society, and it is essential that we understand and respond to it accordingly.

One industry that has experienced the consequences of this shift is the video industry, exemplified by the rise and fall of ESPN's leverage. The video industry is facing a similar fate as the print and music industries before them. The advent of the internet has brought infinite capacity and free distribution, which have proven to be both a gift and a curse. Industries that relied on scarcity, such as the print and music industries, witnessed their profitability decline rapidly as anyone could publish text or distribute music.

To survive in this new landscape, the video industry must retreat to its strengths and focus on producing content that is unique and cannot be found elsewhere. Running undifferentiated streaming services with high costs is no longer a sustainable strategy. Instead, the industry needs to re-bundle its offerings and provide consumers with exclusive and valuable content. By doing so, they can tap into the long-tail class and cater to their unique interests and preferences.

However, it is not just the industry that needs to adapt; talent must also recognize the challenges posed by this new paradigm. Content producers and studios are no longer divided; they are jointly threatened by the internet's impact. The internet does not bode well for content producers with high costs, and increasing these costs will only make long-term sustainability even more challenging. It is crucial for talent to align their strategies with the industry and focus on creating content that resonates with the long-tail class. By doing so, they can increase their chances of success in this transformed economy.

In response to these changes, there are three actionable pieces of advice that can benefit both the industry and talent:

• 1. Embrace the long-tail class: Rather than trying to cater to the masses and compete with established giants, focus on serving the niches within the long-tail class. By providing unique and tailored content, you can attract a dedicated audience that values your offerings. This can lead to a loyal fan base and sustainable success.

• 2. Collaborate and re-bundle: Instead of going at it alone, consider collaborating with other content producers or studios. By pooling resources and expertise, you can create compelling content that is more likely to attract the attention of the long-tail class. Re-bundling your offerings can also provide more value to consumers and increase your chances of success.

• 3. Embrace digital platforms: The internet may have disrupted traditional revenue streams, but it has also created new opportunities. Embrace digital platforms and leverage their reach to connect with your target audience. Whether it's through streaming services, social media platforms, or other digital channels, utilizing these tools can help you reach a wider audience and increase your chances of success.

In conclusion, the middle class is indeed disappearing, giving rise to a long-tail class where most individuals earn less than the average. This shift has significant implications for industries such as the video industry, which must adapt to survive. By focusing on producing unique content, re-bundling offerings, and embracing digital platforms, both the industry and talent can navigate this transformed economy successfully. It is crucial to recognize and respond to these changes to maximize the benefits to society and ensure a sustainable future.