Niche Markets

Niche markets are where it's at: Chris Anderson's The Long Tailis exactly right. The Internet not only eliminates the overhead ofphysical space but also, more importantly, reduces the overhead offinding what you want to near-zero. When your computer tracks yourpreferences and auto-discovers new content that you actually want, it enables new markets that couldn't otherwise exist.

Update 10/11: Joi Ito's take.