Dan Bricklin has a great essay on the Long Tail, Hyperdifferentiation and general purpose tools called When The Long Tail Wags The Dog. Dan recently appeared on an episode [ mp3 ] of the Gillmor Gang where they talk about the concepts outlined in the essay.
The Long Tail website discusses the idea of a tiered pricing model for music through iTunes, something record labels are pushing for. I think it makes sense – most of the music I would buy is 80’s shredding anyway, so I would probably stick in the $.79 – $.99 range. 😉