GNM2012: Aggregators and the News Industry: Charging for Access to Content

The Internet has drastically altered the nature of competition in the news industry. This article develops a model of price and quality competition between firms in the online news industry. In equilibrium, firms randomise in their pricing strategies and this generates the cross-sectional mixture of advertiser and subscription funded business models we observe. The model also plausibly explains why pricing strategies differ across content areas. An important part of my explanation is that...

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From: Microsoft Research

Related topics : news aggregator business model