Strategies for Selling Paid Content on Newspaper and Magazine Web Sites: An Empirical Analysis of Bundling and Splitting of News and Magazine Articles
Journal
JMM : the international journal on media management
ISSN
1424-1277
ISSN-Digital
1424-1250
Type
journal article
Date Issued
2004
Author(s)
Abstract
More and more newspaper and magazineWeb sites offer paid content. However, selling information goods at a price higher than the marginal cost means finding a strategy for product or price differentiation. A possible strategy to solve this problem is the bundling of information goods.
In this article, we analyze empirically, with quantitative statistic methods, strategies for selling bundled and unbundled content on newspaper and magazineWeb sites. This analysis is based on the theoretical approach of Bakos and Brynjolfsson (1996).
The article shows that a cannibalization takes place if the same bundle of information goods is offered in offline (printed) and online (digital) media at the same time. Traditional bundling models work nonetheless in an online media if the online content is rebundled (e.g., as dossiers about a topic), but thereby do not compete with the printed version.
In this article, we analyze empirically, with quantitative statistic methods, strategies for selling bundled and unbundled content on newspaper and magazineWeb sites. This analysis is based on the theoretical approach of Bakos and Brynjolfsson (1996).
The article shows that a cannibalization takes place if the same bundle of information goods is offered in offline (printed) and online (digital) media at the same time. Traditional bundling models work nonetheless in an online media if the online content is rebundled (e.g., as dossiers about a topic), but thereby do not compete with the printed version.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Institut für Medien und Kommunikationsmanagement MCM
Publisher place
St. Gallen
Volume
6
Number
1-2
Start page
59
End page
66
Pages
8
Subject(s)
Eprints ID
13002
File(s)![Thumbnail Image]()
Name
IJMM061&2pp059-066.pdf
Size
1.24 MB
Format
Adobe PDF
Checksum (MD5)
64f9761d77cb012c00c246ab470cdf0c