That being said, the general point is valid - the current business model for generating entertainment is broken, leaving it ripe for disruption, and the OP's fallacy is the assumption that the current business model is the only way for content to be created and distributed.
i loked hard for any arguments in the linked article from your comment,sadly i could not find any. yeah, the long tail is about distribution and about filters. the long tail is not about bocoming a mainstream hit withot effort, its not about the lack of hits in the future.
there is a great book called "he long tail" -it`s a hihly recommended read. p.s. the example about video games is outdated, there is a long long long til of videogames now (please see your iphone or android market for references )
That being said, the general point is valid - the current business model for generating entertainment is broken, leaving it ripe for disruption, and the OP's fallacy is the assumption that the current business model is the only way for content to be created and distributed.