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Strategies for Selling Paid Content on Newspaper and Magazine Websites (2004)

Abstract
More and more newspapers and magazines websites offer paid content. But selling information goods at a higher price than the marginal cost means to find a strategy for product or price differentiation. A possible strategy to solve this problem is bundling of information goods. In this paper we will analyse empirically with quantitative statistic methods strategies for selling bundled and unbundled content on newspapers and magazine websites. This analysis is based on the theoretical approach of Bakos and Brynjolfsson (1996, 1999). The article shows that a cannibalisation takes place if the same bundle of information goods is offered in offline (printed) and online (digital) media at the same time. But traditional bundling models work nonetheless in online media if the online content is re-bundled e.g. as a dossiers about a topic, and thus does not compete with the printed version.

Publication details
Publisher JMM - Journal of Media Management
Repository Netacademy Universe (Switzerland)
Keywords Strategy, Internet
Type Text
Language Englisch