Final answer:
The business model referred to in this question is the 'long tail' model, which allows companies to generate significant revenue by selling a small number of units from a wide variety of choices. This model takes advantage of digital platforms to cater to specific customer interests and preferences.
Step-by-step explanation:
The business model in which companies can obtain a large part of their revenues by selling a small number of units from almost unlimited choices is referred to as the long tail. In this model, companies take advantage of the availability of digital platforms to offer a wide range of niche products and cater to specific customer interests and preferences.
This concept was popularized by Chris Anderson in his book 'The Long Tail: Why the Future of Business is Selling Less of More.' The long tail represents the distribution of sales across a wide range of products, with a few high-demand products generating the majority of the revenue and a large number of lower-demand products collectively accounting for a significant share of the total revenue.
For example, online streaming platforms like Netflix and Amazon Prime Video thrive on the long tail model by offering a vast library of movies and TV shows, including less popular or niche content that may not find shelf space in traditional brick-and-mortar stores.